Question

The Accounts Receivable balance and Allowance for Bad Debts for Spring Garden Plans Click the loon to view the transactions) December 31, 2017, was $10,000 and $2,000 (crede balance, respectively. During 2018, Spring Garden Pars completed the following transactions Read the t rents Requirement 1. Joumalize Spring Garden Plania's transactions for 2016 assuming Spring Garden Plans uses the lowance method. (Record debt first, then croors Select the explanation on the last line of the jumal entrybie Check your spelling carefully and do not abbreviate. When appicable, use the account names provided in the problems a. Sales revenue on account, $284.400 ore Cost of Goods Sold) Accounts and Explanation Debit Credit b. Collections on account, $217,000 Accounts and Explanation Debit Credit c. Write-offs of uncollectibles, 56,200 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later

Answer 1

1.

Credit Transaction Account title a Accounts receivable Sales revenue Debit 284,400 284,400 217,000 Cash Accounts receivable 217,000 6,200 Allowance for bad debts Accounts receivable 6,200 5,400 Bad debt expense Allowance for bad debts 5,400

2.

Jan. 1, 2018 Beg. Bal. a. Sales revenue Dec. 31, 2018 Beg. Bal. Accounts receivable 10,800 217,000 b. Cash collection 284,400 6,200 c. Write off 72,000 c. Write off Allowance for bad debts 6,200 2,000 Jan 1, 2018 Beg. Bal. 5,400 d. Bad debt expense 1,200 Dec. 31, 2018 Beg. Bal. Bad debts 5,400 d. Allowance for bad debts Dec. 31, 2018 Beg. Bal. 5,400

3.

Balance Sheet (Partial): Current Assets: Accounts receivable 72,000 Less: Allowance for bad debts -1,200 70,800