On December 31, 2019, Ling Co. estimated that 2% of its net accounts receivable of $450,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. The allowance account had a zero balance before adjustment on December 31, 2019. On May 11, 2020, Ling Co. determined that the Jeff Shoemaker account was uncollectible and wrote off $1,100. On June 12, 2020, Shoemaker paid the amount previously written off. Prepare the journal entries on December 31, 2019, May 11, 2020, and June 12, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)Instructions Prepare the journal entries on December 31, 2019, May 11, 2020, and June 12, 2020.

The required journal are as follows:

On December 31, 2019:

Debit Bad debt expense (2% x $450,000)              $9,000

Credit Allowance for doubtful accounts                  $9,000

(To record estimated bad debt expense)

On May 11, 2020:

Debit Allowance for doubtful accounts                    $1,100

Credit Accounts receivable                                       $1,100

(To write-off accounts receivable from Jeff Shoemaker)

On June 12, 2020:

Debit Accounts receivable                                        $1,100

Credit Allowance for doubtful accounts                   $1,100

(Reversal of accounts receivable from Jeff Shoemaker)

On June 12, 2020:

Debit Cash                                                                  $1,100

Credit Accounts receivable                                       $1,100

(Recognition of payment from Jeff Shoemaker)

Explanation:

On December 31, 2019, the bad debt expense was determined as a percentage of the net accounts receivable, that is 2% x $450,000 = $9,000. This amount serves as opening balance for Year 2020 although Year 2019 had zero opening balance.On May 11, 2020, there was a write-off to the tune of $1,100. This means the accounts receivable would be reduced against the allowance account.On June 12, 2020, the initially written-off amount was collected. Therefore, there would be a reversal of the initial adjustment as a result of this. The would set the effect on the allowance account to be zero.

The answer should be b.

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not.