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On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: The company made a credit sale of $400,000. The company wrote off the uncollectible accounts for $14,000. The company collected the receivable of $6,000 that had been written off previously. Prepare journal entries to record the above three transactions. Assume that 1% of the company’s accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.

On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: The company made a credit sale of $400,000. The company wrote off the uncollectible accounts for $14,000. The company collected the receivable of $6,000 that had been written off previously. Prepare journal entries to record the above three transactions. Assume that 1% of the company’s accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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  1. On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the company’s reporting date. During 20X2, the company had the following transactions:
  2. The company made a credit sale of $400,000.
  3. The company wrote off the uncollectible accounts for $14,000.
  4. The company collected the receivable of $6,000 that had been written off previously.
  • Prepare journal entries to record the above three transactions.
  • Assume that 1% of the company’s accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.

 

 

 

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