During the year ended December 31, 2020, Kelly's Camera Equlpment had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2020, Accounts Recelvable showed a $10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts recelvable during 2020 amounted to $68,000. Use the following data for 2020 to answer the questions: a. On December 10, 2020, a customer balance of $1.500 from a prlor year was determined to be uncollectible, so It was written off. b. On December 31, 2020, a declsion was made to contlnue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Requlred: 1. Prepare the required Journal entries for the two events In December 2020. (If no entry Is requlred for a transaction/event, select "No Journal entry requlred" In the first account fleld.) View transaction list View journal entry worksheet No Date General Journal Debit Credit Dec. 10, 2020 Sales returns and allowances 1,500 Accounts receivable 1,500 Dec. 31, 2020 Bad debt expense 1,700 Allowance for doubtful accounts 1.700
During the year ended December 31, 2020, Kelly's Camera Equlpment had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2020, Accounts Recelvable showed a $10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts recelvable during 2020 amounted to $68,000. Use the following data for 2020 to answer the questions: a. On December 10, 2020, a customer balance of $1.500 from a prlor year was determined to be uncollectible, so It was written off. b. On December 31, 2020, a declsion was made to contlnue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Requlred: 1. Prepare the required Journal entries for the two events In December 2020. (If no entry Is requlred for a transaction/event, select "No Journal entry requlred" In the first account fleld.) View transaction list View journal entry worksheet No Date General Journal Debit Credit Dec. 10, 2020 Sales returns and allowances 1,500 Accounts receivable 1,500 Dec. 31, 2020 Bad debt expense 1,700 Allowance for doubtful accounts 1.700
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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