Make the following entries from Credit Card and Debit Card Sales.

a) A sale of $2,000 was made + HST 13%. The customer paid with his Bank VISA Card. The Service fee is 4%. (11 Marks)

b) A sale of $2,000 was made + HST 13%. The customer paid with a non-bank credit card called Super Card.

c) A sale of $2,000 was made + HST 13% at Walmart. The customer, J. Smith paid with a Walmart credit.

24. Exercise - Understanding Accounts Receivable Given Information The Balance in the A/R Ledger Control Account at year-end is $45,000. The” Allowance for Doubtful Accounts” ledger balance is in a $500 credit balance. An aging of A/R receivable is completed and it is estimated that 4% of Accounts Receivable is uncollectible.

Answer the following questions 

1) Use the Balance Sheet Method. What is the year-end entry to record estimated bad debts? (4 Marks)

2) What is the Net Realizable Value of the Accounts Receivable at year-end after the allowance has been set up? (2 Marks)

3) During the next year, an customer’s account of $600 is determined to be uncollectible. What would the entry be? (2 Marks)

4) A year later, the customer recovers and pays the $600 owed. What entries are needed?

Answer rating: 100% (QA)

Solution Question 19 a Bank Account 2260 To Sales Account 2000 To HST 13 260 Being payment from a cu... View the full answer