Question: On December 31 of last year the accountant for Basset

On December 31 of last year, the accountant for Basset Co. prepared a balance sheet that included $ 198,654 in Accounts Receivable and $ 13,528 (credit) in Allowance for Doubtful Accounts. Selected transactions that occurred during January of this year are as follows:
a. Sales of merchandise on account, $ 192,300.
b. Sales returns and allowances related to sales of merchandise on account, $ 5,619.
c. Cash payments by charge customers (no cash discounts), $ 157,930.26.
d. Account of Clarke Company written off as uncollectible, $ 1,349.34.
e. By the process of aging Accounts Receivable, on January 31, it was decided that Allowance for Doubtful Accounts should be adjusted to a balance of $ 23,471.10.
f. Closed the Bad Debts Expense account.

1. Record the entries in a general journal, page 36. Record the letter in the Date column.
2. Record the balance in Allowance for Doubtful Accounts (account no. 114).
3. Post the appropriate entries to the accounts for Allowance for Doubtful Accounts and Bad Debts Expense (account no. 642).

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  • CreatedOctober 21, 2014
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