[safdarmalik]

Account
Title: uncollectible accounts

The income statement approach to estimating un collectible accounts expense is used by Burgess Wholesale. On March 31 the firm had accounts receivable in the amount of Rs. 630, 000. The allowance for doubtful accounts had a credit balance of Rs. 3,950. The controller estimated that uncollectible account expense would amount to one half of 1% of the net sales made during March. This estimate was entered in the accounts by adjusting entry on March 31.
On Aril 12, an account receivable from Conrad Stern of Rs. 3,110 was determined to be worthless and was written off. However on April 24, Stern won several thousand dollars on a TV game show and immediately paid the Rs. 3,110 past due Account.
How you will make entries

[safdarmalik]

The income statement approach to estimating un collectible accounts expense is used by Burgess Wholesale. On March 31 the firm had accounts receivable in the amount of Rs. 630, 000. The allowance for doubtful accounts had a credit balance of Rs. 3,950. The controller estimated that uncollectible account expense would amount to one half of 1% of the net sales made during March. This estimate was entered in the accounts by adjusting entry on March 31.
On Aril 12, an account receivable from Conrad Stern of Rs. 3,110 was determined to be worthless and was written off. However on April 24, Stern won several thousand dollars on a TV game show and immediately paid the Rs. 3,110 past due Account.
How you will make entries