QUESTION 20 Elder Company uses are estimatedt be 2% of net sales Using the follo

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QUESTION 20 Elder Company uses are estimatedt be 2% of net sales Using the following described in the spaces provided the allowance method for estimating uncollectible accounts. Net sales for the year totaled $100,000, and uncollectible accounts account titles exactly as they appear below, prepare journal entries to record the transactions Account titles: Bad Debt Expense, Allowance for Doubtful Accounts, Accounts Receivable-Benes, Sales, Cash Dec. 31: Prepared the adjusting entry to record estimated uncollectible accounts using the Jan. 5: Sold merchandise to Mary Benes for $500 Aug 21: Wrote off Mary Benes' account as uncollectible when she declared banknuptcy Oct 5. Unexpectedly received a check for $250 from Mary Benes (note: this requires two entries) Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All Answers

Explanation / Answer

Journal entries Date Account Titles Debit Credit Dec.31 Bad debt expenses $2,000 Allowance for doubtful accounts $2,000 Jan.5 Accounts Receivable - Benes $500 Sales $500 Aug.21 Allowance for Doubtful accounts $500 Accounts Receivables-Benes $500 Oct.5 Accounts Receivable - Benes $250 Allowance for doubtful accounts $250 Oct.5 Cash $250 Accounts Receivables-Benes $250

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