The statement of financial position of Windsor Inc. at December 31, 2016, includ

Question

The statement of financial position of Windsor Inc. at December 31, 2016, includes the following:

Transactions in 2017 include the following:

Prepare all necessary journal entries for Windsor Inc. to reflect the information above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Notes receivable $288,500 Accounts receivable 285,300 Less: Allowance for doubtful accounts (46,600 ) $527,200

Explanation / Answer

Journal Entries Cash Account Dr. 149,000 Sales Discount Dr. (51,800*2%) 1036 Accouns receivable Cr. 150,036 Cash Account Dr. 16,700 Bad debts recovered Account Cr. 16,700 Bad debts Written off Dr. 40,000 Accounts receivable Cr. 40,000 Allowance for Doubtful debts Dr. 40,000 Bad debts written off Cr. 40,000 Income Statement Dr. 44,400 Allowance for Doubtful Debts Cr. 44,400 Note: Opening balance of Allowance for Doubtful debt 46,600 Less: Bad debts written off 40,000 Net balance in Allowance for doubtful debt 6,600 Balance to be maintained at the end 51,000 Allowance for doubtfule debt to be created(51,000-6600) 44400

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