Question

The Accounts Receivable balance and Allowance for Bad Debts for Winter Retreats at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Winter Retreats completed the following transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Winter Retreats's transactions for 2018 assuming Winter Retreats uses the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold). More Info Accounts and Explanation Debit Credit а. a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold) b. Collections on account, $225,000. c. Write-offs of uncollectibles, $6,400. d. Bad debts expense of $5,900 was recorded. b. Collections on account, $225,000. Print Done Credit Accounts and Explanation Debit b. Requirements 1. Journalize Winter Retreats's transactions for 2018 assuming Winter Retreats uses the allowance method c. Write-offs of uncollectibles. $6.400. 2. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. Accounts and Explanation Debit Credit 3. Show how accounts receivable would be reported on the balance sheet at December 31, 2018. C. Print Done

Answer 1

Journal enties a Sales Reenue on Account 367,300 Accounts Recirabler Ac a8300 DY sas7,300 TD Saler Revenuu e (b&ng taler made on Acount b Cash Alc $aa 5,000 DY saa5000 TO 4ccounte Receable Ac tbing cath receved tapm Alcecenabler DY $6400 tlowance tor Opubtful bebu-- To 4/cceunt reavabler alc $6400 tbingorite off c eceia bl 5900 d Baddebtr To lloane for Doubtfull dhb tbing bad debt apentd Dr 4/c $5900

Date Accounts Recel able t1e t0, s00 a6300 Bu Atlowoenu tor CY To bal bld 10 Paler a45,D0O By carh dlc 6400 Revenue Doubt full 66700 bal cld a96,IDO २१६,1o० llowanu tor Baddebts 2000 By bal bld TO Mc's recivabe 6400 5900 By Baddibts to bal cld 1500 F1900 900 Baddebts expense By profit loss5A00 10 Hlowane toY Baddebts 5AD0 5900 5,900 CuTrent Asets 66t00 a. Debtars Allowane tor Bad dkb13 (1500) 65a00