Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $267,000 of services on account. In 2021, the company wrote off uncollectible accounts of $10,700. By the end of 2021, cash collections on accounts receivable totaled $224,700. Pincus estimates that 15% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021?
Journal entry worksheet
Record the write-offs of allowance for uncollectible accounts during 2021.

The journal entry Pincus recorded to write off uncollectible accounts during 2021:

Debit Allowance for uncollectible accounts $10,700

Credit Accounts receivable $10,700

The entry to recognize bad debt expense for 2021:

Debit Bad Debts Expense $15,440

Credit Allowance for uncollectible account $15,440

The write-offs of allowance for uncollectible accounts during 2021:

Debit Allowance for uncollectible accounts $10,700

Credit Accounts receivable $10,700

Explanation:

Pincus Associates uses the allowance method to account for bad debts.

The journal entry Pincus recorded to write off uncollectible accounts during 2021:

Debit Allowance for uncollectible accounts $10,700

Credit Accounts receivable $10,700

The accounts receivable balance at 12/31/2021 = services on account - wrote off uncollectible accounts - cash collections on accounts receivable = $267,000 - $10,700 - $224,700 = $31,600

Estimated uncollectible = 15% x $31,600 = $4,740

Before adjusting, Allowance for uncollectible accounts has balance of Debit $10,700

Bad debt expense = $4,740 + $10,700 = $15,440

The entry:

Debit Bad Debts Expense $15,440

Credit Allowance for uncollectible account $15,440

The write-offs of allowance for uncollectible accounts during 2021:

Debit Allowance for uncollectible accounts $10,700

Credit Accounts receivable $10,700

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o