Beta Corporation uses the allowance method of accounting for bad debt expense. During the year 2021,...
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Beta Corporation uses the allowance method of accounting for bad debt expense. During the year 2021, the company had the following transactions: • Sales of $1,400,000 ($900,000 on credit, $500,000 for cash). • Collections of $600,000. Write offs of $2,600. Recoveries of accounts written off of $1,200. ● Beta began the year with the following account balances: • Accounts Receivable - $110,000 Allowance for Doubtful Accounts - $3,700 (credit balance) At year-end, the company estimates that 2% of accounts receivable will be uncollectible. Record all transactions for the year ending 2021. Beta Corporation uses the allowance method of accounting for bad debt expense. During the year 2021, the company had the following transactions: • Sales of $1,400,000 ($900,000 on credit, $500,000 for cash). • Collections of $600,000. Write offs of $2,600. Recoveries of accounts written off of $1,200. ● Beta began the year with the following account balances: • Accounts Receivable - $110,000 Allowance for Doubtful Accounts - $3,700 (credit balance) At year-end, the company estimates that 2% of accounts receivable will be uncollectible. Record all transactions for the year ending 2021.
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Lets go through each transaction and record them 1 Sales Debit Accounts Receivable 900000 O Credit S... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
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