A manufacturer made $$185,000$ in credit sales during March $2022.$ The practice for the

manufacturer is to provide $4\%$ as Allowance for Bad & Doubtful Debts from each month' sales.

He prepares his financials annually.

A customer, from whom $$2,900$ was receivable could not be collected as he went in to

receivership and writen$-$off in December $2022,$ but could collect $($cash received$)$ $$850$ from

another customer whose invoice was written$-$off in the last year.

Prepare necessary journal enries and prepare ledger for Allowance for Bad and Doutful debts

if the opening balance in the account on January $2022$ was $$1,710.$

Answer rating: 100% (QA)

Journal entries to record the necessary adjustments for Bad Doubtful Debts To writ... View the full answer