On December 31, 2011, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Nova

Question:

On December 31, 2011, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Nova Co. estimates that 9% of its accounts receivable balance of $90,000 will become uncollectible and records the necessary adjustment to the Allowance for Doubtful Accounts. On May 11, 2012, Nova Co. determined that J. Rast’s account was uncollectible and wrote off $1,200. On June 12, 2012, Rast paid the amount previously written off.
Instructions
Prepare the journal entries on December 31, 2011, May 11, 2012, and June 12, 2012.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

Question Posted: