FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On 1 June, Mason and Boyce had
1/6 -Accounts receivable -debit - balance 849,555
1/6- Allowance for doubtful debts- credit- balance-12,100
During June, the following transactions occurred: 1. Revenue earned on credit, $1,195,000. 2. Sales returns, $24,100. 3. Accounts receivable collected, $1,400,000. 4. Accounts written off as uncollectable, $15,851.
Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the
Required: (a) Prepare general
(b) Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June.
(c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection
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