Problem 8-1A (Part Level Submission) At December 31, 2016, House Co. reported th
ID: 2541226 • Letter: P
Question
Problem 8-1A (Part Level Submission)
At December 31, 2016, House Co. reported the following information on its balance sheet.
During 2017, the company had the following transactions related to receivables.
29,000
Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 (a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation 1. Credit 2. 3. 4 (To reverse account previously written off.) (To record the collection of accounts receivable.)Explanation / Answer
Required journal entries are as prepared below:
Date Particulars L.F Amount ($) Amount ($) 1 Account Receivable 3,700,000 Sales 3,700,000 (For sale recorded) 2 Sales Return and allowances 50,000 Account Receivable 50,000 (for sales return recorded) 3 Cash 2,810,000 Account Receivable 2,810,000 (for cash collected on account receivable) 4 Bad debts 90,000 Account Receivable 90,000 (for write off of accounts receivable) 5 Account Receivable 29,000 Bad debt 29,000 (For recovery of bad debt)