On december 31, 2020, central freight reported an allowance for uncollectible accounts of $15,300. during 2021, central wrote off $17,000 in accounts receivable. included in the write-off was roskoff corp.'s account in the amount of $750. roskoff subsequently paid this balance. at december 31, 2021, an analysis of the accounts receivable aging schedule indicated the need for an allowance for uncollectible accounts of $14,900.

prepare all implied journal entries relative to bad debt expense and the allowance for the uncollectible accounts.

Explanation:

To write off specific accounts:

Debit (contra asset account) - Allowance for uncollectible accounts $17,000

Credit (asset account) - Accounts receivable $17,000

To reinstate account previously written off:

Debit (asset account) - Accounts receivable $750

Credit (contra asset account) - Allowance for uncollectible accounts $750

To adjust allowance for uncollectible accounts at year-end :

Bad debt expense = allowance for uncollectible accounts at the end of the period - (allowance for uncollectible accounts at the beginning of the period - wrote off + reinstate account previously written off)

Bad debt expense = $14,900 – ($15,300 – $17,000 + $750)

Debit (expense account) - Bad debt expense $15,850

Credit (contra asset account) - Allowance for uncollectible accounts 15,850

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; intensive use of a sales force and is relatively costly;