During the 2015-16 financial year CE Electronics entered into the following transactions: Sales on account $1400000 Collections
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Question:
During the 2015-16 financial year CE Electronics entered into the following transactions:
Sales on account | $1400000 |
Collections of credit sales | 1225000 |
Write off accounts deemed uncollectible | 20000 |
Received payments on accounts previously | 7500 |
written off |
|
On its 30 June 2016 statement of financial position, CE reported gross accounts receivable of $707000 and an allowance account of $43000.
Required
Prepare all journal entries to record each of the transactions that occurred in 2015-16 and the journal entry to record bad debt expense at 30 June 2016, assuming that 7 per cent of accounts receivable at 30 June are uncollectable.
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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