Question: as 7-5 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an Allowance method for $800 account of
as 7-5 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an Allowance method for $800 account of a customer, C. Green. On March 9, it receives a $300 payment from Green bad debts 1. Prepare the journal entry or entries for January 31. 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green. P2 aS 7-6 Percent of accounts receivable method P2 Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of S280,000. Uncollectibles are estimated to be 1.5% of ac- counts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $300
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
