McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit...
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible.
At the end of the first quarter of 2020, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account.
Required:
| Prepare the journal entry to record the write-off for McKinney. |
Homework Answers
The entry would be
| Allowance for Doubtful Accounts. | 8500 | |
| Accounts Receivable. | 8500 |
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McKinney & Co. estimates its uncollectible accounts as a
percentage of credit sales. McKinney made credit...
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit...
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AP6-5B (Accounts receivable and uncollectible accounts-percentage of credit sales method) Majestic Equipment Sales Company, which sells only on account, had a $120,000 balance in its Accounts Receivable and a $4,200 balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $820,000 and its total cash collections from customers were $780,000. During the year, the company concluded that customers with accounts totalling $6,000 would be unable to pay, and wrote these receivables...
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30, Dude Ranch Circle estimates its uncollectible accounts at 1.5% of its credit sales of$825,000, when adjusting for estimated losses from uncollectible accounts, the debit to Bad Debt Expense is 31. The allowance for bad debts account is contra to which of the following accounts? ATan 32. After aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400. If the accounts receivable t net receivables would...
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