On December 31, 2013, When Its Allowance for Doubtful Accounts

question 23

Essay

On December 31, 2013, when its Allowance for Doubtful Accounts had a credit balance of $1,500, Leeds Company estimates that 6% of its accounts receivable balance of $95,000 will become uncollectible. On March 3, 2014, Leeds Company determined that Megan Jost's account of $950 was uncollectible. On May 15, 2014, Jost paid the amount previously written off.
Instructions
Prepare the journal entries for December 31, 2013, March 3, 2014 and May 15, 2014.

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Definitions:

Long-Term Equipment Lease

An agreement where a physical asset is rented for a longer duration, often exceeding one year, allowing the use of the asset without purchasing it.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant over a period.

Per Unit Basis

A method of quantifying costs, revenues, or other financial metrics on the basis of a single unit of production or service.

Activity

A specific task or action that is part of a process or contributes to the completion of a project.