The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31, 2016: June 8. Wrote off account of Kathy Quantel, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,440 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan ………………. $4,600 Greg Gagne ………………… 3,600 Amber Kisko ……………….. 7,150 Shannon Poole ……………… 2,975 Niki Spence ………………… 6,630 31. If necessary, record the year-end adjusting entry for uncollectible accounts. a. Journalize the transactions for 2016 under the direct write-off method. b. Journalize the transactions for 2016 under the allowance method, assuming that the allowance account had a beginning balance of $36,000 on January 1, 2016, and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) _________on December 31 __________Uncollectible Accounts 0-30 days ……………………… $320,000 ……………………………… 1% 31-60 days ………….
