Question: Kansas Furniture Mart had sales of 1 150 000 during 20X1 including

Kansas Furniture Mart had sales of $1,150,000 during 20X1, including $600,000 of sales on credit. Balances on December 31, 20X0, were Accounts Receivable, $120,000, and Allowance for Bad Debts, $10,000. For 20X1 collections of accounts receivable were $560,000. Bad debt expense was estimated at 2% of credit sales, as in previous years. Write-offs of bad debts during 20X1 were $9,000.
1. Prepare journal entries concerning the preceding information for 20X1.
2. Show the ending balances of the balance sheet accounts on December 31, 20X1.
3. Based on the given data, would you advise Eleanor Sarkowski, the president of the store, that the 2% estimated bad debt rate appears adequate?


View Solution:


Sale on SolutionInn
Sales1
Views87
Comments
  • CreatedFebruary 20, 2015
  • Files Included
Post your question
5000