a Credit 1) Debit Company uses the aging of accounts receivable method to estima
ID: 2571146 • Letter: A
Question
a Credit 1) Debit Company uses the aging of accounts receivable method to estimate uncollectible accounts. The started the year with accounts receivable of $85,000 and an allowance for uncollectible a During the year, the company had credit sales of $300,000 and cash collections on account of $325,000. It also wrote off accounts receivable of $7,000. At the end of the year, an aging of accounts receivable indicated the company will not collect $8,000 of its accounts receivable. the credit sales, cash collections, write-off, and uncollectible accounts expense for the year. 1 Joumalize t 2. Create a T account for the allowance for uncollectible accounts, post the necessary entries, and compute an account balance. The T account should support the journal entry for uncollectible accounts expense.Explanation / Answer
Journal entries
Date
explanation
Debit
credit
1-
accounts receivables
300000
sales revenue
300000
2-
cash
325000
accounts receivables
325000
3-
allowance for doubtful debts
7000
accounts receivables
7000
4-
bad debts
8000
allowance for doubtful debts
8000
Ledger Accounts
accounts receivables
balance
85000
cash
325000
sales revenue
300000
allowance for doubtful debts
7000
53000
385000
385000
allowance for doubtful debts
accounts receivables
7000
balance
10000
balance
11000
bad debts
8000
total
18000
total
18000
Journal entries
Date
explanation
Debit
credit
1-
accounts receivables
300000
sales revenue
300000
2-
cash
325000
accounts receivables
325000
3-
allowance for doubtful debts
7000
accounts receivables
7000
4-
bad debts
8000
allowance for doubtful debts
8000
Ledger Accounts
accounts receivables
balance
85000
cash
325000
sales revenue
300000
allowance for doubtful debts
7000
53000
385000
385000
allowance for doubtful debts
accounts receivables
7000
balance
10000
balance
11000
bad debts
8000
total
18000
total
18000
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