Crystal Clear Cleaning uses the allowance method to estimate bad debts. Consider the following April 2023 transactions
Question:
Crystal Clear Cleaning uses the allowance method to estimate bad debts. Consider the following April 2023 transactions for Crystal Clear Cleaning:
Required
1. Prepare all required journal entries for Crystal Clear. Omit explanations.
2. Show how net accounts receivable would be reported on the balance sheet as of April 30, 2023.
Apr. 1 10 12 15 28 28 29 30 Performed cleaning service for Shiree's Home Staging for $13,000 on account with terms n/20. Borrowed money from First Provincial Bank, $30,000, making a 180-day, 12 percent note payable. After discussions with customer More Shine, Crystal Clear has determined that $230 of the receivable owed will not be collected. Wrote off this portion of the receivable. Sold goods to Warner for $9,000 on account with terms n/30. Cost of Goods Sold was $4,500. Sold goods to Lelaine, Inc. for cash of $2,800 (cost $840). Collected from More Shine $230 of receivable previously written off. Paid cash for utilities of $150. Create an aging schedule for Crystal Clear Cleaning for accounts receivable. Crystal Clear determined that $7,000 of receivables outstanding for 1-30 days were 3 percent uncollectible, $10,000 of receivables outstanding for 31-60 days were 20 percent uncollectible, and $5,870 of receivables outstanding for more than 60 days were 30 percent uncollectible. Then determine the total amount of estimated uncollectible receivables and adjust the Allowance for Doubtful Accounts. Assume the account had an unadjusted credit balance of $260. (Round to nearest whole dollar.) Write the adjusting entry.
Step by Step Answer:
ANSWER 1 Journal Entries Date Account Debit Credit Apr 1 Accou...View the full answer
Horngrens Accounting Volume 1
ISBN: 9780136889373
12th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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