Journalize the following transactions: EXERCISE 3 20x1 Dec. 31. Estimated that u

Question

Journalize the following transactions: EXERCISE 3 20x1 Dec. 31. Estimated that uncollectible-account expense for the year was 4% on credit sales of $950,000 and recorded that amount as expenses. 31. Made the closing entry for uncollectible-account expense. 20x2 Feb. July 4. Sold inventory to Marian Holt, $5,500 on account. Ignore cost of goods sold. 1. Wrote off Marian Holt's account as uncollectible after repeated efforts to collect from her. Oct 19. Received $700 from Marian Holt, along with a letter stating her intention to Nov. 15. Received the balance due from Marian Holt. Dec. 31. Made a compound entry to write off the following accounts as uncollectible: pay within 30 days. Reinstated Holt's a count in full. Kaycee Britt, $800; Tim Sands, $900; and Anna Chin, $2,200. 31. Estimated that uncollectible-account expense for the year was 2% on credit sales of $885,000 and recorded the expenses. 31. Made the closing entry for uncollectible-account expense. GENERAL JOURNAL PAGE 1 DATE PR DEBIT DESCRIPTION

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 20x1 31-Dec Bad debt Expense    38,000.00    Allowance for Doubtful Accounts    38,000.00 (record the bad debt expense) 31-Dec Income Summary    38,000.00    Bad Debt Expense    38,000.00 (record the closing of Bad Debt expense) 20x2 4-Feb Accounts Receivable      5,500.00    Sales      5,500.00 (record the sales on credit) 1-Jul Allowance for Doubtful Accounts      5,500.00    Accounts Receivable      5,500.00 (Record the accounts receivable written off) 19-Oct Accounts Receivable      5,500.00    Allowance for Doubtful Accounts      5,500.00 (Record the accounts receivable reinstated written off earlier) 19-Oct Cash          700.00    Accounts Receivable          700.00 (record the amount received) 15-Nov Cash      4,800.00    Accounts Receivable      4,800.00 (record the amount received) 31-Dec Allowance for Doubtful Accounts      3,900.00    Accounts Receivable      3,900.00 (Record the accounts receivable written off) 31-Dec Allowance for Doubtful Accounts    16,400.00     Bad debt Expense    16,400.00 (record the bad debt expense) 31-Dec Bad Debt Expense    16,400.00    Income Summary    16,400.00 (record the closing of Bad Debt expense) Allowance for Doubtful Accounts 20x1 20x1 31-Dec Balance c/f    38,000.00 31-Dec Bad Debt Expense ($950,000 X 4%)    38,000.00    38,000.00    38,000.00 20x2 20x2 1-Jul Accounts Receivable      5,500.00 1-Jan Balance b/f    38,000.00 31-Dec Accounts Receivable      3,900.00 19-Oct Accounts Receivable      5,500.00 31-Dec Bad debt Expense (Bal. Fig.)    16,400.00 31-Dec Balance c/f ($885,000 X 2%)    17,700.00    43,500.00    43,500.00

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