Question 1 A trial balance before adjustment Included the following Debit Credit

Question

Question 1 A trial balance before adjustment Included the following Debit Credit $169,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 1,170 $306,000 5,200 Give jourl enlries assuing thal Lhe eslimale of uncollectibles is delerined by laking (1) 4% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (2) 1% of gross accounts receivable and assume a $1,170 debit allowance account balance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Journal entry for (1)

Date

Accounts and explanations

Debit ($)

Credit ($)

Profit and loss account

5590

Allowance for doubtful debts

5590

(Being the excess allowance for doubtful debts recorded)

Workings

Gross accounts receivable

169000

Allowance for doubtful debts @4%

6760

(169000 X 4%)

Less: Allowance already provided as per unadjusted trial balance

1170

Allowance to be made

5590

Journal entry for (2)

Date

Accounts and explanations

Debit ($)

Credit ($)

Profit and loss account

520

Allowance for doubtful debts

520

(Being the excess allowance for doubtful debts recorded)

Workings

Gross accounts receivable

169000

Allowance for doubtful debts @4%

1690

(169000 X 1%)

Less: Allowance already provided as per unadjusted trial balance

1170

Allowance to be made

520

Journal entry for (1)

Date

Accounts and explanations

Debit ($)

Credit ($)

Profit and loss account

5590

Allowance for doubtful debts

5590

(Being the excess allowance for doubtful debts recorded)

Workings

Gross accounts receivable

169000

Allowance for doubtful debts @4%

6760

(169000 X 4%)

Less: Allowance already provided as per unadjusted trial balance

1170

Allowance to be made

5590

Journal entry for (2)

Date

Accounts and explanations

Debit ($)

Credit ($)

Profit and loss account

520

Allowance for doubtful debts

520

(Being the excess allowance for doubtful debts recorded)

Workings

Gross accounts receivable

169000

Allowance for doubtful debts @4%

1690

(169000 X 1%)

Less: Allowance already provided as per unadjusted trial balance

1170

Allowance to be made

520

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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