1 a. Al Bundy works for Gary’s Shoe’s in Chicago at Store #33 as the Store Manager. His good buddy Bob Rooney decided to

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1 a. Al Bundy works for Gary’s Shoe’s in Chicago at Store
#33 as the Store Manager. His good buddy Bob Rooney decided to ask
Al for credit to buy his wife several pairs of women’s shoes for
her birthday on 1 November. The cost of these shoes is $350.00 and
Al rings them up on account (with no sales tax, because he is Al’s
buddy). What is the needed entry for this transaction?
b. At the end of the year Bob Rooney loses his job and
informs Al that he cannot pay the $350 for the shoes that he
purchased for his wife on 1 November from store #33 of Gary’s
Shoes. Give the journal entry that Al Bundy must make at the end of
the year to reflect this bad debt.
c. At the end of the year Bob Rooney lost his job and
informed Al that he cannot pay the $350 for the shoes that he
purchased for his wife on 1 November from store #33 of Gary’s
Shoes. Accordingly, Al Bundy recorded the entry at the end of the
year to reflect this bad debt. However, Bob Rooney comes into the
store on 15 January to pay his debt in
full. First, give the needed entry get
Bob Rooney back into Gary’s Shoes journal.
d. At the end of the year Bob Rooney lost his job and
informed Al that he cannot pay the $350 for the shoes that he
purchased for his wife on 1 November from store #33 of Gary’s
Shoes. Accordingly, Al Bundy recorded the entry at the end of the
year to reflect this bad debt. However, Bob Rooney comes into the
store on 15 January to pay his debt in full. Al has already given
the first part to get Bob Rooney back into Gary’s Shoes
journal. Next, give the needed entry to
reflect Bob Rooney’s payment of his account in full.
e. After the Bob Rooney episode, Al Bundy wants to set up
and account to record the number of accounts that go unpaid each
year. Of the total store sales of $2,000,000 per year approximately
1 percent of these bill on account are never paid. Accordingly, Al
Bundy needs to set up an account to reflect this. Give the needed
journal entry on 1 January.