(a) Prepare the journal entries to record the four transactions during June (b)
ID: 2574633 • Letter: #
Question
(a) Prepare the journal entries to record the four transactions during June
(b) Based on an ageing analysis of accounts receivable on 30 June, the company determined that the Allowance for Doubtful Debts account should have a credit balance of $13 500 as at 30 June. Prepare the journal entry to record the adjustment.
(c) On 29 July, Kim Ltd, whose $2 400 account had been written off as uncollectable in June, paid its account in full. Prepare the journal entries to record the transaction
On 1 June, Ben and Berry Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. 1/6 Balance Accounts Receivable 849 555 || Allowance for Doubtful Debts | 1/6 Balance 12 100 During June, the following transactions occurred: 1. Fees earned on credit, $1 195 000. 2. Fees refunded to customers, $24 100. 3. Accounts receivable collected, $1 400 000. 4. Accounts written off as uncollectable, $15 851 in total. Ignore GST for this question. Narrations are not required.Explanation / Answer
(a) journal entries to record the four transactions during June
(b) Adjusting entry will be:
Working:
(c)
Date Particulars L.F Amount ($) Amount ($) 1 Account Receivable 1,195,000 Fees earned 1,195,000 (for fees earned) 2 Fees Earned 24,100 Account Receivable 24,100 (for refunded) 3 Cash 1,400,000 Account Receivable 1,400,000 (For cash collected) 4 Allowance for doubtful accounts 15,851 Account Receivable 15,851 (For accounts written off as uncollectible)Related Questions
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