Question

100, and Allowance for Bad Debts had a credit balance of $3,000. During the y company uses the allowance method. (Record debits first, then credits. Select th Soods Sold. (Prepare a single compound journal entry.) * More Info a. Sales of $180,000 ($156,000 on account; $24,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $133,000. c. Write-offs of uncollectible receivables, $2,500. Print Print Done Done en click Check Answer. Clear All

Answer 1

1.

Transaction / Event	Accounts and Explanations	Debit	Credit
		$	$
a.	Cash	24,000
	Accounts Receivable	156,000
	Sales		180,000
	To record cash sales and sales on account
b.	Cash	133,000
	Accounts Receivable		133,000
	To record cash receipts from credit customers
c.	Allowance for Bad Debts	2,500
	Accounts Receivable		2,500
	To write off uncollectible accounts

2.

Accounts Receivable
Bal Jan 1	30,000	b.	133,000
a.	156,000
Bal Dec 31	53,000
Allowance for Bad Debts
c.	2,500	Bal Jan 31	3,000
		Dec 31	3,120
		Bal Dec 31	3,620

3.

Date	Account Titles	Debit	Credit
		$	$
Dec 31, 2018	Bad Debt Expense	3,120
	Allowance for Bad Debts		3,120
	Adjustment to record bad debt expense

4.

Winding Mountain Flagpoles Balance Sheet ( Partial ) December 31, 2018
Assets
Current Assets
Accounts Receivable	$ 53,000
Allowance for Bad Debts	(3,620)
Accounts Receivable, net		$ 49,380