Exercise 1: Presented here are selected transactions related to B. Dylan Corp., which uses perpetual inventory...

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Exercise 1: Presented here are selected transactions related to B. Dylan Corp., which uses perpetual inventory method. Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30. The cost of the merchandise is $17,000. Mar. 1 11 Received payment in full from Potter Company for balance due. Made credit sales for $13.200, terms 2/10, n/30. The cost of the merchandise is $10,000. 13 Received collections of $8,200 on credit sales, assuming the collection is not eligible April. 13 for any discount. Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp. uses the May 10 percentage of receivables basis to estimate bad debts.) The balance in accounts receivable at the end of the first 6 months is $200,000 and June 30 the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense. Received collections of $8,200 on credit sales, assuming the collection is not eligible for any discount. April. 13 Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp. uses the percentage of receivables basis to estimate bad debts.) May 10 The balance in accounts receivable at the end of the first 6 months is $200,000 and June 30 the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense. July 16 One of the accounts receivable written off in May pays the amount due, $4,000, in full. Instructions Prepare the journal entries for the transactions. Exercise 1: Presented here are selected transactions related to B. Dylan Corp., which uses perpetual inventory method. Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30. The cost of the merchandise is $17,000. Mar. 1 11 Received payment in full from Potter Company for balance due. Made credit sales for $13.200, terms 2/10, n/30. The cost of the merchandise is $10,000. 13 Received collections of $8,200 on credit sales, assuming the collection is not eligible April. 13 for any discount. Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp. uses the May 10 percentage of receivables basis to estimate bad debts.) The balance in accounts receivable at the end of the first 6 months is $200,000 and June 30 the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense. Received collections of $8,200 on credit sales, assuming the collection is not eligible for any discount. April. 13 Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp. uses the percentage of receivables basis to estimate bad debts.) May 10 The balance in accounts receivable at the end of the first 6 months is $200,000 and June 30 the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense. July 16 One of the accounts receivable written off in May pays the amount due, $4,000, in full. Instructions Prepare the journal entries for the transactions.

Answer rating: 100% (QA)

DATE GENERAL JOOURNAL DEBIT CREDIT March 1 Accounts Receivable 20000 Sales Revenue 2... View the full answer