Question

WGR DU Ves nad a credit balance of $4,000. Dunng the year, 18. The company uses the allowance method. (Record debits first, then credits. Select the ext Cost of Goods Sold. (Prepare a single compound journal entry.) Debit 0 More Info a. Salds of $183,000 ($165,000 on account; $18,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $130,000. C. Write-offs of uncollectible receivables, $2,800. Print Done and then click Check Answer. Clear All F9 ac

Answer 1

Answer -

1. Answer -

Date	Accounts and Explanation	Debit	Credit
2018
a.	Accounts receivable	$165000
	Cash	$18000
	Sales receivable		$183000
b.	Cash	$130000
	Accounts receivable		$130000
c.	Allowance for Bad debts	$2800
	Accounts receivable		$2800

2. Answer -

T - Accounts :

Accounts Receivable
1/1 Balance	$28000	$130000	Collected
Revenue	$165000	$2800	Wrote off
12/31 Balance	$60200

Allowance for bad debts
		$4000	1/1 Balance
Wrote off	$2800
		$1200	12/31 Unadjusted Balance

3. Answer -

Date	Accounts and explanation	Debit	Credit
2018
Dec. 31	Bad debts expense	$6626
	Allowance for bad debts		$6626

Calculation :

Allowance for bad debts (12/31 balance) = $60200 * 13%

Allowance for bad debts (12/31 balance) = $7826

Allowance for bad debts expense = Allowance for bad debts (12/31 balance) - Allowance for bad debts (12/31 Unadjsted bal.)

Allowance for bad debts expense = $7826 - $1200

Allowance for bad debts expense = $6626

T - Accounts :

Allowance for bad debts
		$4000	1/1 Balance
Wrote off	$2800
		$1200	Unadjsted Balance
		$6626	Expense
		$7826	12/31 Balance

Bad debts expense
1/1 Balance
12/31 Expense	$6626
12/31 Balance	$6626

4. Answer -

Purple Mountain Flagpoles
Balance Sheet-Partial
December 31, 2018
Assets
Current assets :
Accounts receivable	$60200
Less : Allowance for bad debts	$7826
Accounts receivable (net)		$52374