How did Rustic Tables Company manage uncollectible accounts in 2016? What were the key transactions related to uncollectible accounts during the year?
Handling Uncollectible Accounts
Rustic Tables Company dealt with uncollectible accounts in several ways during 2016. The company followed both the direct write-off method and the allowance method to address bad debts. Let's break down the key transactions related to uncollectible accounts that occurred throughout the year:
Key Transactions in 2016:
- June 8: Wrote off the account of Kathy Quantel for $8,440.
- Aug 14: Received $3,000 partial payment on Rosalie Oakes' $12,500 account; wrote off the remaining balance as uncollectible.
- Oct 16: Received $8,440 from Kathy Quantel and reinstated the account.
- Dec 31: Wrote off multiple accounts as uncollectible, including Wade Dolan, Greg Gagne, Amber Kisko, Shannon Poole, and Niki Spence.
These transactions reflect the company's efforts to address bad debt situations and maintain accurate financial records.