Don't provide answer in image format Cullumber Ltd has been in business for several years and has the following information for its operations which ended December 31,2024:123456.Total sales for the year were $3,490,000, of which 60% were on accountThe company estimates that total expected credit losses at December 31, 2024 will be $94,230Cullumber Ltd. began the year with $650,000 in accounts receivable and a normal credit to the allowance for expected creditlosses of $67,000Cullumber Ltd. writes off customer accounts that have been outstanding for more than 120 days During the year, accountswith a carrying amount of $72,000 reached the 120-day mark and were written offThe company uses a collection agency to try to collect accounts that have been written off. The collection agency was able tocollect $22.000 from customers whose accounts had previously been written offDuring the year the company collected $1,770,000 of its accounts receivable.Prepare a summary journal entry for the credit sales and journal entries to record the above transactions on the books ofCullumber Ltd. on December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before creditentries)Account Titles and ExplanationAccounts ReceivableSales Revenue(To record credit sales)Credit LossesAllowance for Expected Credit Losses(To recognize the credit losses)(To recognize the credit losses)Allowance for Expected CreditLossesAccounts Receivable(To write off accounts judged uncollectible)Accounts ReceivableAllowance for Expected Credit tosses(To reinstate an account that was previouslywritten off)CashAccounts Receivable(To record subsequent collection of accountsthat were previously written off)CashAccounts receivableDebitAllowance for expected credit losses $902000209400011123094200720002200022000Accounts ReceivableCalculate the Dec 31, 2024 balances for Accounts receivable and the Allowance for Expected Credit Losses1770000CreditIN DO209 400094230720002200022000

Journal entry is an art of recording, summarizing and classifying business transactions into…

Cumber Ltd. has been in business for several years and has the following information for its operation which ended December 31, 2024: 1 2 3 4 Total sales for the year were $3.490.000, of which 60% were on account The company estimates that total expected credit losses at December 31, 2024 will be $94,230 Cullumber Ltd. began the year with $650,000 in accounts receivable and a normal credit to the allowance for expected credit losses of $67,000 Cullumber Ltd. writes off customer accounts that have been outstanding for more than 120 days. During the year, accounts with a carrying amount of $72.000 reached the 120-day mark and were written off The company uses a collection agency to try to collect accounts that have been written oft. The collection agency was able to collect $22.000 from customers whose accounts had previously been written off During the year the company collected $1,770,000 of its accounts receivatde

Cumber Ltd. has been in business for several years and has the following information for its operation which ended December 31, 2024: 1 2 3 4 Total sales for the year were $3.490.000, of which 60% were on account The company estimates that total expected credit losses at December 31, 2024 will be $94,230 Cullumber Ltd. began the year with $650,000 in accounts receivable and a normal credit to the allowance for expected credit losses of $67,000 Cullumber Ltd. writes off customer accounts that have been outstanding for more than 120 days. During the year, accounts with a carrying amount of $72.000 reached the 120-day mark and were written off The company uses a collection agency to try to collect accounts that have been written oft. The collection agency was able to collect $22.000 from customers whose accounts had previously been written off During the year the company collected $1,770,000 of its accounts receivatde

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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