## (Solution Download) Problem 8-5A (Part Level Submission) At December 31, 2015, the trial balance of Darby Company contai

Problem 8-5A (Part Level Submission)

At December 31, 2015, the trial balance of Darby Company contained

 Debits Credits Accounts Receivable \$375,600 Allowance for Doubtful Accounts \$ 1,000 Sales Revenue 983,200

(a)

Based on the information given, which method of accounting for bad

debts is Darby Company usingAc???the direct write-off method or the

allowance method?

 Show List of Accounts Link to Text

 Attempts: 2 of 2 used

(b) - (e)

 (b) Prepare the adjusting entry at December 31, 2015, for bad debt expense under each of the following independent assumptions. (1) An aging schedule indicates that \$12,110 of accounts receivable will be uncollectible. (2) The company estimates that 1% of sales will be uncollectible. (c) Repeat part (b) assuming that instead of a credit balance there is an \$1,000 debit balance in Allowance for Doubtful Accounts. (d) During the next month, January 2016, a \$3,310 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (e) Repeat part (d) assuming that Darby uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.

(Credit account titles are automatically indented when

amount is entered. Do not indent manually.)

 No Account Titles and Explanation Debit Credit (b) (1) (2) (c) (1) (2) (d) (e)

Show transcribed image text Problem 8-5A (Part Level Submission) At December 31, 2015, the trial balance of Darby Company contained the following amounts before adjustment. Based on the information given, which method of accounting for bad debts is Darby Company using-the direct write-off method or the allowance method?

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