Question

At January 1, 2018, Winding Mountain Flagpoles had Accounts Receivable of $34,000, and Allowance for Bad Debts had a credit balance of $4,000. During the year, Winding Mountain Flagpoles recorded the following: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize Winding's transactions that occurred during 2018. The company uses the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a.) Sales of $186,000 ($164,000 on account; $22,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry.)

Answer 1

1 Date 2018 Accounts and Explanation Accounts Receivable Cash Sales Revenue (To record sales for the year) Debit Credit $164,000 $22,000 $186,000 $131,000 Cash Accounts Receivable (To record collected cash on account) $131,000 $2.800 Allowance for Bad Debts Accounts Receivable $2,800 Accounts Receivable $34,000 $131,000 Collection $164,000 $2,800 Write-offs Beginning Bal. Credit Sales Write-offs Allowance for Bad Debts $2,800 $4,000 Beginning Bal. Credit 3 Date Dec 31 Debit $5,862 Accounts and Explanation Bad Debts Expense Allowance for Bad Debts ($64,200 x 11%) - $1.200 $5,862 Accounts Receivable $34,000 $131,000 Collection $164,000 $2,800 Write-offs Allowance for Bad Debts $2,800 $4,000 Beginning Bal. Beginning Bal. Credit Sales Write-offs $5,862 Adjutment $7,062 Balance Balance $64,200 Bad Debts Beginning Bal. Adjustment Balance $5,862 $5,862 4 Accounts Receivable Less: Allowance for Bad Debts $64,200 -$7,062 $57,138