Johnson company starts the year with $300,000 in A/R and records $1,000,000 in Net Credit sales during
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Question:
Johnson company starts the year with $300,000 in A/R and records $1,000,000 in Net Credit sales during the year, of which 700,000 are collected. Allowance for Doubtful accounts has a beginning balance of $5,000. Write-Offs are $4,000 during the year, and $500 of previously written off were subsequently collected. Johnson estimated that 2% of ending A/R will not be collected (this will be the ending balance in Allowance for Doubtful Accounts.) (Use T accounts)
Required:
- Record journal entries for write-offs, collections of prior write-offs and bad debt expense.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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