Question

ROBLEM V 20x1 Dec. 31, Estimated that uncollectible-account expense for the year was of 3% on credit sales of $650,000 and recorded that amount as expenses. 31. Made the closing entry for uncollectible-account expense. 20x2 Feb. 4. Sold inventory to Marian Holt, $3,500 on account. Ignore cost of goods sold. July 1. Wrote off Marian Holt's account as uncollectible after repeated efforts to collect from her Oct. 19. Received $700 from Marian Holt, along with a letter stating her intention to pay within 30 days. Reinstated Holt's a count in full. Nov. 15. Received the balance due from Marian Holt. Dec. 31. Made a compound entry to write off the following accounts as uncoll aycee Britt, $800; Tim Sands, $700; and Anna Chin, $1,300. 2% on 31. Estimated that uncollectible-account expense for the year was of credit sales of $785,000 and recorded the expenses. 31. Made the closing entry for uncollectible-account expense.

Answer 1

Journal entrres
Date	Accounts title and explannatons				Debit $	Credit $
31-Dec	Uncollectible accounts expenses				19500
	Allowannce for uncollectible accounts (650000*3%)					19500
4-Feb	Accounts recievable				3500
	Sales revenue					3500
1-Jul	Allowance for Uncollectible account				3500
	Accounts receivable					3500
19-Oct	Accounts receivable				3500
	Allowance for uncollectibel accounts					3500
	Cash account				700
	Accounts receivable					700
15-Nov	Cash account				2800
	Accounts receivable					2800
31-Dec	Allowance for Uncollectible account				2800
	Accounts receivable		(800+700+1300)			2800
31-Dec	Uncollectible account expense				15700
	Allowance for uncolectible accounts					15700
		(785000*2%)