At January 1, 2021 Speedway Imports Inc. reported the following on its statement of financial position:...

 

 

 

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At January 1, 2021 Speedway Imports Inc. reported the following on its statement of financial position: Accounts receivable $1.408,000 Allowance for doubtful accounts 94,400 During 2021, the company had the following summary transactions for receivables: 1. Sales on account, $4,320,000; Cost of goods sold, $2.376,000; return rate of 2% 2. Selling price of goods returned, $64,000; cost of goods returned to inventory, $35,200 3. Collection of accounts receivable, $4,320,000 4. Write offs of accounts receivable deemed uncollectible, $128,000 5. Collection of accounts previously written off as uncollectible, $57,600 6. After considering all of the above transactions, total estimated uncollectible accounts, $83.200 Prepare journal entries to record each of the above summary transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. Accounts Receivable Sales (To record sales) Cost of Goods Sold inventory (To record cost of goods sold) 2. Sales Accounts Receivable (To record sales returns) Inventory Cost of Goods Sold (To record cost of goods returned) 3. Cash Accounts Receivable 4. Allowance for Doubtful Accounts Accounts Receivable S. Accounts Receivable Allowance for Doubtful Accounts To reverse write-off of accOunt receivable) Cash Accounts Receivable (To record collection of account receivable) 6. Bad Debts Expense Allowance for Doubtful Accounts At January 1, 2021 Speedway Imports Inc. reported the following on its statement of financial position: Accounts receivable $1.408,000 Allowance for doubtful accounts 94,400 During 2021, the company had the following summary transactions for receivables: 1. Sales on account, $4,320,000; Cost of goods sold, $2.376,000; return rate of 2% 2. Selling price of goods returned, $64,000; cost of goods returned to inventory, $35,200 3. Collection of accounts receivable, $4,320,000 4. Write offs of accounts receivable deemed uncollectible, $128,000 5. Collection of accounts previously written off as uncollectible, $57,600 6. After considering all of the above transactions, total estimated uncollectible accounts, $83.200 Prepare journal entries to record each of the above summary transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. Accounts Receivable Sales (To record sales) Cost of Goods Sold inventory (To record cost of goods sold) 2. Sales Accounts Receivable (To record sales returns) Inventory Cost of Goods Sold (To record cost of goods returned) 3. Cash Accounts Receivable 4. Allowance for Doubtful Accounts Accounts Receivable S. Accounts Receivable Allowance for Doubtful Accounts To reverse write-off of accOunt receivable) Cash Accounts Receivable (To record collection of account receivable) 6. Bad Debts Expense Allowance for Doubtful Accounts

Answer rating: 100% (QA)

Journal entries Ref No General Journal Debit Credit 1 Accounts ... View the full answer