Required 1 : | |
a. | |
Credit sales = Total sales - Cash sales = 11160000 - 2790000 | 8370000 |
Bad debts expense = Credit sales * % of bad debts = 8370000 * 2% | 167400 |
Transaction | General Journal | Debit | Credit |
Dec 31 | Bad debt expense | 167400 | |
Allowance for doubtful accounts | 167400 |
b. | |
Bad debts expense = ( % of bad debts * Ending accounts receivables ) + Unadjusted debit balance in allowance for doubtful accounts = ( 5% * 2090000 ) + 32000 | 136500 |
Transaction | General Journal | Debit | Credit |
Dec 31 | Bad debt expense | 136500 | |
Allowance for doubtful accounts | 136500 |
Required 2 : | ||
Partial Balance sheet | ||
Assets | ||
Current assets : | ||
Accounts receivable | 2090000 | |
Less: Allowance for doubtful accounts ( 167400 - 32000 ) | 135400 | 1954600 |
Required 3 : | ||
Partial Balance sheet | ||
Assets | ||
Current assets : | ||
Accounts receivable | 2090000 | |
Less: Allowance for doubtful accounts ( 136500 - 32000 ) | 104500 | 1985500 |
On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Credit...
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