Complete journal entries for the following transactions: 1. Sales for the month

Question

Complete journal entries for the following transactions: 1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance. 2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay 3. On July 15, surprisingly one of the customers who owed $400 and was written off on June 30, paid their bill 4. On July 31, our fiscal year ends, the allowance for doubtful accounts has a balance of $1,780     The company uses an aging method to calculate the desired allowance balance.     An accounts receivable aging shows the following: 30 days or less = $68,500 31 -60 days = $10,400 61-90 days = $4,300 Over 90 days = $1,200 The company wants an ending reserve equal to: 30 days or less = 1% 31-60 days = 3% 61-90 days = 5% over 90 days = 15% Complete journal entries for the following transactions: 1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance. 2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay 3. On July 15, surprisingly one of the customers who owed $400 and was written off on June 30, paid their bill 4. On July 31, our fiscal year ends, the allowance for doubtful accounts has a balance of $1,780     The company uses an aging method to calculate the desired allowance balance.     An accounts receivable aging shows the following: 30 days or less = $68,500 31 -60 days = $10,400 61-90 days = $4,300 Over 90 days = $1,200 The company wants an ending reserve equal to: 30 days or less = 1% 31-60 days = 3% 61-90 days = 5% over 90 days = 15%

Explanation / Answer

Solution.

Provision.

Bad debt expense account debited $750

Allownces for doubtfull account credited $750

2. Write off entry

Allownces for doubtfull debt debited $980

Account receivable account credited $980

3.Recoverd Bad debt.

Account receivable account debited $400

Allownces for doubtfull debt account debited $400

Cash account Debited $400

Account receivable account credited $400

4.

Bad debt Expenses accounrt debited $ 1,356

Allownces for bad debt account credited $ 1,356

30 days or less = $68,500 x 1% =$685

31 -60 days = $10,400 x 3% = $312

61-90 days = $4,300 x 5% = $215

Over 90 days = $1,200 x 15% = $144

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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