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1. 1. On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance
Posted: Thu Apr 28, 2022 10:46 am
by answerhappygod
- 1 1 On December 31 20x1 The Company Reported A Debit Balance Of 200 000 In Accounts Receivable And A Credit Balance 1 (96.05 KiB) Viewed 27 times
1. 1. On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for doubtful accounts. December 31 is the company's reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000. b. The company wrote off the uncollectible accounts for $12,000. c. The company collected the receivable of $4,000 that had been written off previously. Required (10 marks): (1) Prepare journal entries to record the above three transactions. (2) Assume that 1.5% and 2.5% of the company's 80% and 20% accounts receivable, respectively, cannot be collected, prepare adjusting journal entry at the end of 20X2.