0 ? O ezto.mheducation.comhm.tpx During the year ended December 31, 2015, Kelly\

Question

0 ? O ezto.mheducation.comhm.tpx During the year ended December 31, 2015, Kelly's Camera Shop had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2015, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2015 amounted to $68,000 Data during 2015 follow a. On December 10, a customer balance of $1,500 from a prior year was determined to be uncollectible, so b. On December 31, a decision was made to continue the accounting policy of basing estimated bad debt it was written off. losses on 2 percent of credit sales for the year Required 1. Give the required journal entries for the two events in December (If no entry is required for a View transaction list Journal entry worksheet Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,500. Note: Enter debits before credits eneral Journal Credit Date Dec 10, 2015 Debit O Type here to search

Explanation / Answer

Journal entry :

2) Balance sheet presentation :

Income statement :

Date account & explanation debit credit Allowance for doubtful account 1500 Account receivable 1500 (To record amount write off) Bad debt expense (85000*2%) 1700   Allowance for doubtful account 1700 (To record adjusting entry)

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