Question

	Record the following transactions for Kramer Company:
1-Sep	Sold merchandise to Akin Company, terms 2/10, net 30			$920
3-Sep	Akin Co. returned damaged merchandise to Kramer Company.			$20
7-Sep	Kramer Co. received payment in full.
	GENERAL JOURNAL
DATE	ACCOUNT TITLE		DEBIT	CREDIT

	Heyward Company uses the allowance method for estimating uncollectible accounts.
	Prepare the journal entries to record the following transactions:
1-Jun	Sold merchandise to retail customer for	$1,500	terms n/15.
5-Jul	Received payment from this customer for	$        1,000
1-Oct	Wrote off as uncollectible the balance of this customer's account.			$       500
	(customer had declared bankruptcy)
10-Nov	Unexpectedly received a check from this customer for		$100
	GENERAL JOURNAL
DATE	ACCOUNT TITLE		DEBIT	CREDIT

Answer 1

Journal Entry for Kramer Company
Date	Accounts Title & Explanation	Debit	Credit
01-Sep	Accounts Receivable-Akin Company	$920
	Sales Revenue		$920
03-Sep	Sales Revenue	$20
	Accounts Receivable-Akin Company		$20
07-Sep	Cash ($900 - $18)	$882
	Sales Discount ($900 * 0.02)	$18
	Accounts Receivable-Akin Company ($920 - $20)		$900

Journal Entry for Heyward Company
Date	Accounts Title & Explanation	Debit	Credit
01-Jun	Accounts Receivable	$1,500
	Sales Revenue		$1,500
05-Jul	Cash	$1,000
	Accounts Receivable		$1,000
01-Oct	Allowance for Doubtful Accounts	$500
	Accounts Receivable		$500
10-Nov	Accounts Receivable	$100
	Allowance for Doubtful Accounts		$100
10-Nov	Cash	$100
	Accounts Receivable		$100