Shutterbug Cameras uses the allow ance method of accounting for uncollectible accounts.

Instructions

1. In your working papers, record the following transactions on page 9 in the general journal.

2. Post the transactions to the appropriate accounts.

3. Prepare the Assets section of the balance sheet for Shutterbug Cameras using the partial general ledger in the working papers. The balances of other asset accounts are Merchandise Inventory, $33,000; Supplies, $2,000; and Prepaid Insurance, $1,200.

Transcribed Image Text:

Date Transactions June 2 Wrote off the $593.25 account of Kalla Booth as uncollectible, Memorandum 329. 9 Wrote off the $840 account of Click Studios as uncollectible, Memorandum 343. 10 Received $131.25 from Jimmy Thompson in full payment of his account, which was written off on November 10, Memorandum 349 and Receipt 210. 12 Wrote off the $945 account of FastForward Productions as uncollectible, Memorandum 474. 30 Recorded the adjusting entry for estimated uncollectible accounts for the period. The uncollectible accounts expense estimate is based on 2 percent of the net sales of $150,000. 30 Recorded the closing entry for Uncollectible Accounts Expense.