Accounts receivable transactions are provided below for J Looney Co. Instructions a. Prepare the journal entries on
Question:
Accounts receivable transactions are provided below for J Looney Co.
Instructions
a. Prepare the journal entries on December 31, 2023, March 5, 2024, and June 6, 2024.
b. Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry.
c. Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2024.
Dec. 31, 2023 The company estimated that 5% of its accounts receivable would become uncollect- ible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $650,000 and $2,300 (debit), respectively. The company determined that R. Mirza's $3,700 account and D. Wight's $6,900 account were uncollectible. The company's accounts receivable were $685,000 before the accounts were written off. Mar. 5, 2024 June 6, 2024 Wight paid the amount that had been written off on March 5. The company's accounts receivable were $641,000 prior to recording the cash receipt for Wight.
Step by Step Answer:
a b c 2023 Dec 31 Bad Debt Expense Allowance for Doubtfu...View the full answer
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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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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