heeeellpp! At December 31 of the current year, a company reported the following:

Question

heeeellpp! At December 31 of the current year, a company reported the following: total sales for the current year: $880,000. Accounts receivable balance at December 31, end of current year: $210,000 Allowance for Doubtful Accounts balance at Dec. 31: 1,500 credit 1. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: A) 1.5% of credit sales. B) 5%of accounts receivable. 2.prepare the necessary entry to write off J. Mohr's $300 A/R balance. 3.prepare the necessary entries to record the recovery of J. Mohr's A/R balance when he pays the company at later date.

Explanation / Answer

ANS Accounts receivable $525,000 Allowance (45,000) Cash realizable value 480,000 During 2007 sales on account were $145,000 and collections on account were $86,000. Also, during 2007 the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.