During the year ended July 31, 2006, the company had the following transactions related to receivables:...

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During the year ended July 31, 2006, the company had the following transactions related to receivables: 1. Total sales, all on account 2. Sales returns and allowances, all on account 3. Collections of accounts receivable, including $17,000 previously written off as uncollectible 4. Write-offs of accounts receivable considered to be uncollectible $309,000 a) b) C) 15,000 204,000 5,000 Instructions Prepare the journal entries to record each of these four groups of transactions. Prepare the journal entry to record bad debts expense for 2006, assuming that the company believes 10% of net sales for the year will be uncollectible. Ignoring part b), prepare the journal entry to record bad debts expense for 2006, assuming that the company believes 10% of year-end accounts receivable will be uncollectible. During the year ended July 31, 2006, the company had the following transactions related to receivables: 1. Total sales, all on account 2. Sales returns and allowances, all on account 3. Collections of accounts receivable, including $17,000 previously written off as uncollectible 4. Write-offs of accounts receivable considered to be uncollectible $309,000 a) b) C) 15,000 204,000 5,000 Instructions Prepare the journal entries to record each of these four groups of transactions. Prepare the journal entry to record bad debts expense for 2006, assuming that the company believes 10% of net sales for the year will be uncollectible. Ignoring part b), prepare the journal entry to record bad debts expense for 2006, assuming that the company believes 10% of year-end accounts receivable will be uncollectible.

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