Zajic Corp. had the following transactions relating to uncollectible accounts during 2016:
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Feb. |
15 |
Wrote off F. Young’s account of $200 as uncollectible |
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Apr. |
30 |
Collected from G. Yopek Inc. $100 that had been written off in 2015 |
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June |
26 |
Received $300 from Wong Machine Ltd. (Wong’s previous balance was $700); no further payments are expected and the balance was written off |
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Sept. |
7 |
Wrote off H. Wolfe’s account of $350 |
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Dec. |
31 |
Analysed accounts receivable, revealing the following: |
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a. Accounts to be written off: |
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S. Wuff |
$300 |
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P. Levesque |
400 |
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T. White |
100 |
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b. Ageing of accounts receivable: |
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Required:
- Assume that there was a credit balance of $1,735 in the Allowance for Doubtful Accounts general ledger account at December 31, 2015. Prepare the entry to write off the uncollectible accounts at December 31, 2016.
- Prepare the appropriate adjusting entry to set up the required balance in the Allowance for Doubtful Accounts general ledger account at December 31, 2016.
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