Problem 7-6 The balance sheet of Teal Company at December 31, 2016, includes the

Question

Problem 7-6

The balance sheet of Teal Company at December 31, 2016, includes the following.

Transactions in 2017 include the following.

Prepare all journal entries necessary to reflect the transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Notes receivable $36,200 Accounts receivable 195,800 Less: Allowance for doubtful accounts 20,700 $211,300

Explanation / Answer

Journal entry :

No accounts & explanation debit credit 1 Cash 140621 Sales discount (69300*3%) 2079 Account receivable 142700 (To record amount collected) 2 Account receivable 5920 Allowance for doubtful accounts 5920 (To record amount reinstated) Cash 5920 Account receivable 5920 (To record amount received) 3 Allowance for doubtful accounts 20900 Account receivable 20900 (TO record amount write off) 4 Bad debt expense (23200-5720) 17480   Allowance for doubtful accounts 17480 (To record adjusting entry)

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