Question

The Accounts Receivable balance for Lakeside, Inc. at December 31, 2023, was $22,000. During 2024, Lakeside eamed revenue of $457,000 on account and collected $329,000 on account. Lakeside wrote off $6,300 receivables as uncollectible Industry experience suggests that Incollectible accounts will amount to 6% of accounts receivable. Read the requirements Requirement 1. Assume Lakeside had an unadjusted $2,300 credit balance in Allowance for Bad Debts at December 31, 2024. Joumalize Lakeside's December 31, 2024, adjustment to record bad debts expense using the percent of receivables method. (Record debits first, then credits Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Debit Credit Dec. 31

Answer 1

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Lakeside
Particulars	Amount $
Opening Accounts Receivable	22,000.00
Add: Sales	457,000.00
Less: Collection	(329,000.00)
Less: Accounts Written off	(3,600.00)
Ending Accounts Receivable	146,400.00
Uncollectible amount at 5%	7,320.00
Less: Credit balance in the Allowance Accounts	(6,300.00)
Bad debt expense	1,020.00
Answer 1
Journal entry
Particulars	Debit $	Credit $
Bad debt expense	1,020.00
Allowance for Bad debts		1,020.00
Answer 2
Uncollectible amount at 5%	7,320.00
Add: Debit balance in the Allowance Accounts	1,900.00
Bad debt expense	9,220.00
Journal entry
Particulars	Debit $	Credit $
Bad debt expense	9,220.00
Allowance for Bad debts		9,220.00