BE8-3

(a)
Date Account Titles and Explanation Debit Credit
24-Jan Allowance for Doubtful Account $ 4,300
Accounts Receivables $ 4,300
(Write-off of Madonna Inc.)

(b) Before write-off After write-off

Account Receivable $ 700,000 $ 695,700
Allowance for Doubtful Accounts $ 25,000 $ 20,700
Cash realizable value $ 675,000 $ 675,000

BE8-5
(a)
Date Account Titles and Explanation Debit Credit
31-Dec Bad debt expense $ 5,200
Allowance for Doubtful Account $ 5,200
(To record bad debt expense for the year)

(b)
Date Account Titles and Explanation Debit Credit
31-Dec Bad debt expense $ 8,900
Allowance for Doubtful Account $ 8,900
(To record bad debt expense for the year)
E8-4
(a)
Date Account Titles and Explanation Debit
31-Dec Bad debt expense $ 900
Accounts Receivable-Matisse
(To record write-off of Matisse account)

(b)
Date Account Titles and Explanation Debit
31-Dec Bad debt expense $ 6,700
Allowance for Doubtful Account
(To record bad debt expense for the year)

(c)=
Date Account Titles and Explanation Debit
31-Dec Bad debt expense $ 6,740
Allowance for Doubtful Account
(To record bad debt expense for the year)

E8-5
(a) Total estimated uncollectibles
2017
Current $ 1,300
1-30 days past due $ 645
31-90 days past due $ 3,030
Over 90 days past due $ 3,700
Total each year $ 8,675

(b)
Date Account Titles and Explanation Debit
31-Mar Bad debt expense $ 6,575
Allowance for Doubtful Account
(To record bad debt expense)

(c) The changes in the aging schedule from 2016 to 2017:

- The uncollectible percentages increases as the days past due increases. That means the
more days past due, the, the more amount of money is uncollectible.
- The company's expected bad debt expense in 2017 is higher than the same expense in
2016.
 P8-6A
Date Account Titles and Explanation
Credit 5-Jan Account Receivable- Rian Company
Sales Revenue
$ 900 (To record sales on account)
2-Feb Notes Receivable
Account Receivable- Rian Company
(To record acceptance of Rian Company note)
Credit 12-Feb Notes Receivable
Account Receivable- Cato Company
$ 6,700 (To record acceptance of Cato Company note)
26-Feb a
Sales Revenue
(To record sales on account)
Credit 5-Apr Notes Receivable
Account Receivable- Malcolm Co.
$ 6,740 (To record acceptance of Malcolm Co. note)
12-Apr Cash
Note Receivable
Interest Revenue
estimated uncollectibles (Collect Cato Company in full)
2016 2-Jun Cash
1500 Note Receivable
400 Interest Revenue
720 (Collect Rian Company in full)
550 15-Jun Notes Receivable
$ 3,170 Account Receivable- Gerri Company
(To record acceptance of Gerri Inc. note)

Credit

$ 6,575

creases. That means the

tible.
an the same expense in
 Debit Credit
$ 4,000
$ 4,000

$ 4,000
$ 4,000

$ 12,000
$ 12,000

$ 5,200
$ 5,200

$ 5,200
$ 5,200

$ 12,200
$ 12,000
$ 200

$ 4,120
$ 4,000
$ 120

$ 2,000
$ 2,000