QUESTION
Allowance for Doubtful Accounts On January 1, 2016, King Company's Allowance for Doubtful Accounts had a credit balance of $\$ 15,000$. During 2016, King (1) charged $\$ 32,000$ to bad debt expense, (2) wrote off $\$ 23,000$ of uncollectible accounts receivable, and (3) unexpectedly recovered $\$ 6,000$ of bad debts written off in the prior year. The Allowance for Doubtful Accounts balance at December 31, 2016, should be:
a. $\$ 32,000$ b. $\$ 30,000$ C. $\$ 24,000$ d. $\$ 47,000$
How the-Percent-of-Sales-(Income-Statement-Oriented)-Method-Works
\begin{tabular}{|c|c|c|c|c|c|} \hline$a$ & $\alpha$ & $\begin{array}{c}\text { Allowance for- } \\ \text { uncollectible- } \\ \text { accounts receivable- } \\ \text { accounts (CA-)a }\end{array}$ & $a$ & $\$ 23,000: 0$ & $\alpha$ \\ \hline$\alpha$ & $x$ & $\begin{array}{c}\text { Accounts receivable } \\ (\mathrm{A}-\mathrm{a}) \mathrm{a}\end{array}$ & $a$ & $a$ & $\$ 23,000:$ \\ \hline$\alpha$ & $\alpha$ & $\begin{array}{c}\text { Wrote off- } \\ \text { uncollectible } \\ \text { accounts receivable } \\ \text { accounts expensed }\end{array}$ & $a$ & $a$ & $a$ \\ \hline$a$ & $a$ & $\alpha$ & $a$ & $x$ & $\alpha$ \\ \hline$\alpha$ & $a$ & $a$ & $a$ & $a$ & $\alpha$ \\ \hline$a$ & $a$ & $a$ & $a$ & $x$ & $\alpha$ \\ \hline$\alpha$ & $a$ & $a$ & $a$ & $\alpha$ & $a$ \\ \hline \end{tabular}
Accounts Receivable $\Phi$ Allowance-for-Doubtful-Accounts $\uparrow$
How do I journalize or make a journal entry of the part of the above word problem and question, where it says, “(3) unexpectedly recovered $6,000 of bad debts written off in the prior year.
The Allowance for Doubtful Accounts balance at December 31, 2016, should be:
What phrase should I write on the credit or debit area of the Allowance for Doubtful Accounts t tree and should $6,000 go on the credit or debit side of the Allowance for Doubtful Accounts t tree?
Public Answer
