Question

Question 3 Dialex. Watches completed the following selected transactions during 2007 & 2008: 2007 Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $400,000 and recorded the amount as expense. Use the allowance method. Dec. 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. June. 29 Wrote off Mitch Vanez's account as uncollectible after repeated effort to collect from him. Aug. 6 Received $600 from Mitch Vanez, along with a letter apologizing for being so late. Reinstated Vanez's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Monet, $1,300. Moya School of Business Manage. Unlverty of the West Indies at Mova. -4 Dec. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded that amount as expense Dec. 31 Made the closing entry for uncollectible-account expense. Requirements: a) Record the transactions in the general journal and post to the two ledger accounts.

Answer 1

Answear Pagsing Of Jovanal entries: Particularis Cin $ Debit $ 4000 Lin $) credit SNO 3t-dec -OT on collectible account expense To allowance for Oncollectible accounts Cito, record the un collectible expense] $4,000 31-dec $ 4000 Income suomavy $ 4000 To un collectible account expense (To Record the expenses closed to the income summary] 17--Jan 08 Account leceivable $600 TO Sales Devenue Cto, record the sales on credit) $600 29-Jan -08 $600 Allowance for un collectible account To accounts Deceivable Ctorecord the accounts steceniable Weitten Off? $600

S.NO -66.Aug Pasiticolaus Accounts receivable Alc To allowance four un collectible accounts o, second the account receivables de instated] cn $3 | Con $ Debit Credit $600 $600 06 Aug .08 $600 receivable $600 Cash Alc TO Accounts C to record the received] cash 3l-dec $3000 $3000 Allowance fooi encollectible accounts TO accounts receivable [ to record the accounts Seceivable Written of €) $3800 $ 3800 be un collectible account expense ale To allowance for uncollectible accoonts (ta second the uncollectble expense] Bladed Income sommary Alc To un collectible account expense Cto, orecord the expenses closed to income summary] $3800 $3800

bedgear Accounts: 1. Allowance foot oncollectible Alc':- Date po pautticolaus | Ambont batel pasiticolass LAmount 31-dec to balance CLE $4000 -07 31-dec on collectible espere $ 4000 account $4,000 $4000 -08 Accoonts receiva. $ 608 Olajan Balance 6/6 $4000 ble -18 Bladeca Accounts receiva $3000 24-jan Accounts ble $600 Seceivable $3800 (54,80,000x 1.) Account expense Chle fig) 58400 $ 8400 / -08 31-dec Balance CLE $4800 3.dec un collectible 2. un collectible account expense: Date Paorticolaus Amount bata pasiticulausAmount 31-dec Allowance fout $4000 31-dec Income Summary $4000 -07 on collectible Accou | -67 $ 4000 $4000 31-dec Allowance foot $3800 un collectible $ 3800 Summary Accoon's 131-dec Income $3800 $ 3800