The Accounts Receivable balance for Southside, Inc. at December 31, 2023, was $24,000. During 2024, Southside earned revenue of $452,000 on account and collected $326,000 on account.
Southside wrote off $5,500 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2% of accounts receivable
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Requirement 1. Assume Southside had an unadjusted $1,800 credit balance in Allowance for Bad Debts at December 31, 2024. Journalize Southside's December 31, 2024, adjustment to record
bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Dec. 31
Accounts and Explanation
Debit
Credit
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part
1.
2.
Requirements
Assume Southside had an unadjusted $1,800 credit balance in Allowance for Bad
Debts at December 31, 2024. Journalize Southside's December 31, 2024,
adjustment to record bad debts expense using the percent-of-receivables method.
Assume Southside had an unadjusted $1,600 debit balance in Allowance for Bad
Debts at December 31, 2024. Journalize Southside's December 31, 2024,
adjustment to record bad debts expense using the percent-of-receivables method.
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