Question

0 0 9 - Search Home Insert 9 21 Problem 17.2. A 8 Page Layout Formulas Data Review View Help % Conditional Formatting 2 Format as Table Alignment Number Cells | Cell Styles Font Editing Ideas Styles Ideas - X fx 2014 Christine Jonick Write-offs of Accounts Receivable - Allowance Method - Percent of Sales You are Jonick Corporation, a company that sells merchandise to customers. You have invoiced numerous customers on account. You use the allowance method, percent of sales, to account for uncollectible customer accounts, 1. 2 Journalize the transactions below related to write-offs of Accounts Receivable. Post the transactions for 2013 to the ledgers. You will only post to the Allowance for Doubtful Accounts and Bad Debt Expense accounts 13 You estimate that uncollectible accounts will be 2% of net sales for the previous year. Net sales in 2013 were $675,000 Account Debit Credit Date 1/1/13 0 -

Answer 1

Date	Particular	Debit	Credit
1/1/13	Bad debts Expense	$ 13,500
	To Allowance for doubtful accounts		$ 13,500
	( To record uncollectible accounts expense i. e. 2% of $ 675,000)
03/14/13	Allowance for doubtful accounts	$ 5,600
	To Outboard Motors Co.		$ 5,600
	(To write off outboard motors Co.)
5/9/13	Cash	$ 16,200
	Allowance for doubtful accounts	$ 4,200
	To Pinson Company		$ 20,400
	(To record receipt of cash and write off balance amount)
06/23/13	Allowance for doubtful Accounts	$ 2,100
	To Clarity Inc		$ 2,100
	(To write off accounts receivable)
11/30/13	Cash	$ 2,100
	To Allowance for doubtful accounts		$ 2,100
	(To record receipt of payment for u collectible accounts)
12/19/13	Allowance for doubtful accounts	$ 3,300
	To Morris Enterprises		$ 3,300
	(To record write off accounts receivable)
12/31/13	Profit and Loss Account	$ 13,500
	To Bad debts expense		$ 13,500
	(To close bad debts expense)