Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annu

Question

Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2014, accounts receivable were presented in the company's balance sheet as follows:

During 2015, $165,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $17,000 were subsequently collected. At the end of 2015, an aging of accounts receivable indicated a need for a $228,000 allowance to cover possible failure to collect the accounts currently outstanding.

One entry to summarize all accounts written off against the Allowance for Doubtful Accounts during 2015.

The adjusting entry required at December 31, 2015, to increase the Allowance for Doubtful Accounts to $228,000.

Prepare the above general journal entries:

Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2014, accounts receivable were presented in the company's balance sheet as follows:

Explanation / Answer

bad debt   debit                     165000

credit allowances for bad debts                 165000

allowances for bad debts                  165000

credit bills recivables                                         165000

2- accounts receivables     debit        17000

   credit allowances for doubtful debts           17000

ii - cash    debit                    17000

    to bill receivables                            17000

3- bad debt    debit        148000      

     credit allowance for doubtful debts                          148000

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