Journal Entries

The Calvin Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations.

May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.

Aug. 14 Received a check for $700 from Larry Taylor whose account had previously been written off as uncollectible.

Dec. 31 Use the following information for year-end adjusting entry:

The balances of Accounts Receivable and Allowance for Doubtful Accounts at year end are $175,000 and $900, respectively. Both have debit balances. It is estimated that bad debts will be 3% of accounts receivable.

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...t journal entry explanations.

May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.

Aug. 14 Received a check for $700 ...