The following selected transactions were taken from the records of Gunn Corporation for the month of December 2015:
Dec. 16. Billed Norwood and Company for $32,500 in services.
16. Received $1,500 as partial payment on the $2,000 account of Dan Wade. Wrote off the remaining balance as uncollectible.
18. Wrote off the following accounts as uncollectible (record as one journal entry):
G. Lenarduzzi ........ $1,250
J. Raymond ......... 500
N. Clark ........... 3,300
D. Johnson ......... 1,675
22. Received $500 from Dan Wade, which had been written off on December 16.
Reinstated the account and recorded the cash receipt.
31. Gunn Corporation uses the percent of receivables method of estimating uncollectible accounts expense. Based on past history, 4% of receivables are expected to be uncollectible.
Journalize the transactions for the month of December under the percent of receivables method, assuming that the allowance account had a balance of $5,400 and the accounts receivable account had a balance of $125,600 on December 1, 2015.

  • CreatedSeptember 15, 2015
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