Problem 8-4A A CHECK FIGURES: 2. Bad Debt Expense = $20,460 5, Bad Debt Expense
ID: 2574249 • Letter: P
Question
Problem 8-4A A CHECK FIGURES: 2. Bad Debt Expense = $20,460 5, Bad Debt Expense = $7,200 BeleVu Supplies showed the following selected adjusted balances at its December 31, 2016, year-end: ccounts receivable transactions and bad debt adjustments LO1,2,3 Accounts Receivable Allowance for Doubtful Accounts Dec. 31/16 16,400Dec. 31/16 Balance Balance40,000 During the year 2017, the following selected transactions occurred: a. Sales totaled $2.800,000, of which 25% were cash sales (cost of sales $1,804,000). b. Sales returns were $108,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $24,000 was recovered. d. Several accounts were written off; $26,000. e. Collections from credit customers totalled $1,790,000 (excluding the recovery in (c) above). Part A Required transactions (a) through (e). You may find it useful to post your entries to T-a 1. Journalize for Accounts Receivable and Allowance for Doubtful AccountsExplanation / Answer
Sales Date Account Title Debit Credit Cash 700,000 Customer 2,100,000 Sales 2,800,000 Cost of Sales Cost Of Sales 1,804,000 Inventory 1,804,000 Sales Return Date Account Title Debit Credit Sales Return & allowances 108,000 Customer 108,000 An Account Recovered Date Account Title Debit Credit Cash 24,000 Allowance for doubtful accounts 24,000 Several Account Written off Date Account Title Debit Credit Allowance for doubtful accounts 26,000 Customers 26,000 Collection Date Account Title Debit Credit Cash 1,790,000 Customers 1,790,000 Customer/A/R account Beg Bal 490,000 Sales Return 108,000 Sales 2,100,000 Collection 1,790,000 2,590,000 1,898,000 Cl Balance 692,000 Allowances for doubtful accounts Account W/off 26,000 Beg Bal 16,400 Account recovered 24,000 26,000 40,400 Cl Balance 14,400