Answer Happy

Swiss Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: Accounts Receivable Dec. 31/19 Balance 430,000 Allowance for Doubtful Accounts 18,800 Dec. 31/19 Balance During 2020, the following selected transactions occurred: a. Sales totalled $2,820.000, of which 25% were cash sales (cost of sales $1,819,000). b. Sales returns were $114,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $30,000 was recovered. d. Several accounts were written off: $32,000. e. Collections from credit customers totalled $1,780,000 (excluding the recovery in (c) above). Part A Required: 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. View transaction list
Journal entry worksheet < 1 2. 3 4 Record the sales. Note: Enter debits before credits. Transaction a(1) Record entry 5 6 7 General Journal Clear entry Debit Credit View general journal L
Required: 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales. View transaction list Journal entry worksheet 1 Record the estimate for uncollectible accounts. Note: Enter debts before credits Date General Journal Credit December 21 Clear entry View general journal Racord entry Debid 1 of 5 Next >
3. Show how accounts receivable will appear on the December 31, 2020, balance sheet Partial Balance Sheet Assets Current assets:
4. What will bad debt expense be on the Income statement for the year ended December 31, 2020? Bad debt expense 27
Part C (Independent of Part B) Required: 5. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables View transaction list Journal entry worksheet < Record the estimate for uncollectible accounts. Notes Enter debits before credits Date General Journal Credit Dec 31 View genealjuul Record entry Debit
6. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Partial Balance Sheet Assets Current assets 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Bad debt expense 2