| 1. | On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $2,300, Hunt Co. estimates that 9% of its accounts receivable balance of $89,100 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. | |
| 2. | On May 11, 2014, Hunt Co. determined that J. Byrd’s account was uncollectible and wrote off $1,200. | |
| 3. | On June 12, 2014, Byrd paid the amount previously written off. |
Prepare the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| No. | Date | Account Titles and Explanation | Debit | Credit |
| 1. |  December 31, 2013May 11, 2014June 12, 2014 |
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| 2. | December 31, 2013May 11, 2014June 12, 2014 |
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| 3. | December 31, 2013May 11, 2014June 12, 2014 |
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| (To reinstate account previously written off) |
the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014.
| Date | Description | Debit $ | Credit $ |
| 31-Dec-13 | Dr Bad Debt Expense | 10319 | |
| Cr Allowance for Doubtful Accounts | 10319 | ||
| (Bad debt expense = $89100 x 9% + $2300 = $10319 |
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| 2013May 11, 2014 | Dr Allowance for Doubtful Accounts | 1200 | |
| Cr Accounts Receivable | 1200 | ||
| (Being J. Byrd’s account was uncollectible and wrote off $1,200.) |
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| June 12, 2014 | Dr Accounts Receivable | 1200 | |
| Cr Allowance for Doubtful Accounts | 1200 | ||
| Dr Cash | 1200 | ||
| Cr Accounts Receivable | 1200 | ||
| (Being Byrd paid the amount previously written off) |
