Question

Problem 2 (15 Points) During June 2019, Andy Company had the following transactions: 1. Sales of $185,000 (5142,000 on account, $43,000 for cash). 2 Collections on account. $128,000 3. Write-offs of uncollectible receivables, 51,900 4. Recovery of receivable previously written off, 5600 Additional information Ignore Cost of Goods Sold Andy uses the allowance method for uncollectible accounts Andy estimates that 4.50% of its Accounts Receivable will be uncollectible On June 1, 2019, the Accounts Receivable balance was $25,000 and the Allowance for

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Accounts Receivables $ $ 142,000.00 43,000.00 Cash $ 185,000.00 Sales Revenue (To record Sales on account and for cash) $ 128,000.00 Cash Accounts Receivables (To record Collection of receivables) $ 128,000.00 1,900.00 Allowance for Uncollectible accounts Accounts Receivables (To record write off of uncollectible accounts) $ 1,900.00 600.00 600.00 Accounts Receivable Allowance for Uncollectible accounts (To record reversal entry for write off previously done collected) 600.00 Cash Accounts Receivables (To record Collection of receivables previously written off $ 600.00