Solution
No. | Accounts | Debit | Credit |
1 | Accounts receivable | $ 1,000,000.00 | |
Cash | $ 1,000,000.00 | ||
(To record credit sales) | |||
2 | Cash | $ 850,000.00 | |
Accounts receivable | $ 850,000.00 | ||
(To record collection on accounts) | |||
3 | Allowance for doubtful accounts | $ 34,000.00 | |
Accounts receivable | $ 34,000.00 | ||
(To write of bad debts) | |||
4 | Bad debts expense | $ 19,000.00 | |
Allowance for doubtful accounts | $ 19,000.00 | ||
(To record bad debts expense) |
Working
Beginning balance of Allowance for Bad Debts account | $ 40,000.00 |
Less: Amount written off | $ (34,000.00) |
Unadjusted balance for allowance for bad debts | $ 6,000.00 |
.
Estimated balance of allowance for uncollectables | $ 25,000.00 | Cr |
Balance in Allowance for uncollectable account (Cr) | $ 6,000.00 | Cr |
Total bad debts to be recorded | $ 19,000.00 | Cr |
3. (8 points) The balance sheet of Starsky Company at December 31, 2018, includes the following Accounts receivable...
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