Please double check these answers for me, thanks!! 23-700 points value During Bu
ID: 2596061 • Letter: P
Question
Please double check these answers for me, thanks!!
23-700 points value During Burns Company's first year of operations, credit sales totaled $152,000 and collections on credit sales totaled S111.000 Burns estimates that bad debt losses will be 1 5% of credit sales By year-end. Burns had written off $360 of specific accounts as uncollectible. Required: 1 Prepare all appropriate jounal entries relative to uncollectible accounts and bad debt expense (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the entry to write-off specific accounts Note: Enter debits before creditoExplanation / Answer
SOLUTION:
JOURNAL ENTRIES:
Dr. Allowance for doubtful accounts $360
Cr. Accounts receivable $360
Dr. Bad debt expense $2,280
Cr. Allowance for doubtful accounts $2,280
($152,000 * 1.5%)
Burns Company
Balance Sheet
Assets:
Accounts receivable ($152,000-111,000) 41,000
Minus: Allowance for doubtful accounts (2,280)
Net $38,720