Yates Company's records provide the following information concerning certain account balances and changes in these account balances
Question:
Prepare the entry to record the missing information for each account. (Consider each independently.)
1. Accounts Receivable: Jan. 1, balance $41,000, Dec. 31, balance $55,000, uncollectible accounts written off during the year, $6,000; accounts receivable collected during the year, $150,000. Prepare the entry to record sales revenue.
2. Allowance for Doubtful Accounts: Jan. 1, balance $3,700, Dec. 31, balance $6,700, uncollectible accounts written off during the year, $21,700. Prepare the entry to record bad debt expense.
3. Accounts Payable: Jan. 1, balance $25,000, Dec. 31, balance $57,000, purchases on account for the year, $150,000. Prepare the entry to record payments on account.
4. Interest Receivable: Jan. 1 accrued, $3,000, Dec. 31 accrued, $2,100, recognized for the year, $42,500. Prepare the entry to record cash interest received.
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson