The following transactions took place in the current year.

 

1.) Sales-cash and credit 3,070,000

2.) Cash received from credit customers 2,455,000

3.) Cash received from credit customers who took advantage of the 3/10, n/30credit terms (included in No.2) 1,455,000

4.) Accounts receivable written off as worthless 20,000

5.) Cash received from cash customers 470,000

6.) Credit memo for sales return and allowances issued to credit customers 55,000

7.) Cash refunds to cash customers 10,000

8.) Recoveries of accounts written off, notincluded in above collections 5,000

 
Requirements:

Prepare journal entries to record the transactions.
Prepare the adjustment for doubtful accounts if the entity provides for doubtful accounts equal to 2% of net credit sales.
Determine the net realizable value of accounts receivable at year-end?

Answer rating: 100% (QA)

1 Journal entries Sales Cash and Credit 3070000 Accounts Receivable 3070000 Account Debit Credit Acc... View the full answer