Reference no: EM132184696

Question - At December 31, 2017, the trial balance of Bonita Industries contained the following amounts before adjustment.

	Debit	Credit
Accounts Receivable	$189,100
Allowance for Doubtful Accounts		$1,570
Sales Revenue		930,400

(a) Prepare the adjusting entry at December 31, 2017, to record bad debt expense, assuming that the aging schedule indicates that $10,260 of accounts receivable will be uncollectible.

(b) Repeat part (a), assuming that instead of a credit balance there is a $1,570 debit balance in Allowance for Doubtful Accounts.

(c) During the next month, January 2018, a $2,140 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off.

(d) Repeat part (c), assuming that Bonita Industries uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.