Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of
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Question:
Dec. | 2 | Sold tents for $5,140 on account with a cost of $2,570. |
20 | Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,270 and Grouse Co. with an accounts receivable balance of $2,570 were uncollectible and needed to be written off. | |
23 | Unexpectedly received payment from Grouse Co. for $2,570. | |
31 | Estimated that 10% of accounts receivable recorded to date would be uncollectible. |
Required:
1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately.
2. Post the T-account for accounts receivable, bad debt expense, and allowance for doubtful accounts. Determine the ending balance for each account.
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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