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Problem - Complete the following problem using the provided t-accounts. If you get stuck, review the completed example above once again.
Roduk Inc. uses the Allowance method for accounting for uncollectible receivables.
(a) Record the adjusting entry at December 31, the end of the fiscal year, to estimate for doubtful accounts. The accounts receivable account has a balance of $200,000, and the Allowance for Doubtful Accounts before adjustment has a credit balance of $4,200. Analysis of an aging of receivables estimates doubtful accounts of $8,000 at 12/31.
(b) In April of the following fiscal year, $700 owed by Kathy Jones on account is written off as uncollectible.
(c) A few weeks later, Kathy pays the $700 balance.
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