Question

The following selected transactions were taken from the records of Niagara Company for the year ended December 31, 2015:
Jan. 24. Wrote off account of J. Coleman, $3,000.
Feb. 17. Received $1,500 as partial payment on the $4,000 account of Karlene
Solomon. Wrote off the remaining balance as uncollectible.
May 29. Received $3,000 from J. Coleman, which had been written off on January
24. Reinstated the account and recorded the cash receipt.
Nov. 30. Wrote off the following accounts as uncollectible (record as one journal entry):
Don O’Leary ....... $2,000
Kim Snider ........ 1,500
Jennifer Kerlin ....... 900
Dec. 31. Niagara Company uses the percent of sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 1% of sales are expected to be uncollectible. Niagara Company recorded $975,000 of sales during 2015.
Journalize the transactions for 2015 under the percent of sales method assuming that the allowance account had a beginning balance of $10,000 on January 1, 2015.


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  • CreatedSeptember 15, 2015
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