The ledger of Cheyenne Company at the end of the current year shows Accounts Receivable $77,000, Credit Sales $810,000, and Sales Returns and Allowances $41,300. Prepare journal entries for each separate scenario below. (a) If Cheyenne uses the direct write-off method to account for uncollectible accounts, journalize the entry at December 15 if Cheyenne determines that Matisse’s $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $900 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $496 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 9% of accounts receivable.

a.Dec 15

Dr Bad debt expense$900

Cr Account receivable $900

b.Dec 31

Dr Bad debt expense $6,800

Cr Allowance for doubtful accounts $6,800

c.Dec 31

Dr Bad debt expense $7,426

Cr Allowance for doubtful accounts $7,426

Explanation:

Preparation of the journal entries

a. Preparation of the journal entry at December 15 if Cheyenne determines that Matisse’s $900 balance is uncollectible.

Dec 15Bad debt expense$900

Account receivable $900

b. Preparation of the adjusting entry at December 31, assuming uncollectibles are expected to be 10% of accounts receivable

Dec 31

Dr Bad debt expense $6,800

Cr Allowance for doubtful accounts $6,800

[($77,000 x 10%) - $900]

c. Preparation of the adjusting entry at December 31, assuming uncollectibles are expected to be 9% of accounts receivable

Dec 31

Dr Bad debt expense $7,426

Cr Allowance for doubtful accounts $7,426

($77,000*9%+496)

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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answer; dividing net income by 1- t ;