On January 19, 2020, LMB Corporation recorded sales of $100,000 on credit with the following journal entry:

Dr. Accounts Receivable $100,000

Cr. Sales Revenue $100,000 (Service revenues recorded on credit)

Record the journal entries in the space below for the following transactions that occurred during the next few months following these original sales.

A. On January 31, 2020, LMB Corporation estimated bad debt expenses of $4,000.

B. On February 4, 2020, LMB collects $80,000 worth of accounts receivable from various customers.

C, On March 8, 2020, LMB determines that one customer, whose Accounts Receivable balance is $3,000, will not be able to pay. LMB writes off the $3,000 balance.

D. On March 23, 2020, LMB receives a phone call from the customer in C. stating that the $3,000 will be sent by wire transfer in the next day or so.

E. The check (mentioned in D.) is delivered and deposited into the bank on March 26, 2020. All entries should be in this space provided - label them A-E.

Answer rating: 100% (QA)

Part Date General Joumal Debit Credit A 31Jan20 Bad debts 4000 Allowance for Doubtful Accounts 4000 ... View the full answer