Prepare the journal entries necessary to record the following transactions and economic events for Magnetawan Ltd. (Magnetawan):

Question:

Prepare the journal entries necessary to record the following transactions and economic events for Magnetawan Ltd. (Magnetawan):
a. During 2018, Magnetawan had cash sales of $175,000 and credit sales of $625,000.
b. During 2018, $405,000 of was collected.
c. Management estimated that 5 percent of credit sales wouldn't be collected.
d. During 2018, Magnetawan wrote off $34,000 of accounts receivables. 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...