dit View Favorites Tools Help 2. 20.00 points A year end December 31), Chan Comp
ID: 2553155 • Letter: D
Question
dit View Favorites Tools Help 2. 20.00 points A year end December 31), Chan Company estimates ts bad debts as 050% o s annual cedit sales of S7 15 ? . Chan records its Bad Debts Expense for that esti ate follow ng February 1 Chan decides that the S3 8 account oIP Park is colect ble and rits l of as a bad dett on.ure 5 akuexpectedy the mun e ou the ot Prepare the journal entries for these transactions View transaction list Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 AM 3/26/2018Explanation / Answer
Solution: Following is the required journal entries:
Date Particulars Debit ($) Credit ($) Dec 31 Bad Debt Expense(715000*0.5%) 3,575 Allowance for Doubtful Accounts 3,575 Feb 01 Allowance for Doubtful Accounts 358 Accounts Receivable- P.Park 358 June 05 Accounts Receivable- P.Park 358 Allowance for Doubtful Accounts 358 June 05 Cash 358 Accounts Receivable- P.Park 358Related Questions
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