Question

In the journal provided, prepare the entries for the following transactions. (Omit explanations.) Dec. 1 Sold...

In the journal provided, prepare the entries for the following transactions. (Omit explanations.)

Dec. 1 Sold merchandise on account to Katurah Wells for $600.

12 Received payment of $400 from Katurah Wells.

31 Made adjusting entry for Uncollectible Accounts Expense, using the percentage of net sales method. Net sales for the year totaled $14,000, uncollectible accounts are estimated at 2 percent, and Allowance for Uncollectible Accounts has a $50 credit balance prior to adjustment.

Feb. 5 Wrote off Katurah Wells's balance because she filed for bankruptcy.

17 Unexpectedly received the $200 from Katurah Wells.

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Answer #1

Journal entry :

Date accounts & explanation debit credit
Dec 1 Account receivable 600
Sales revenue 600
Dec 12 Cash 400
Account receivable 400
Dec 31 Bad debt expense (14000*2%) 280
Allowance for doubtful accounts 280
Feb 5 Allowance for doubtful accounts 200
Account receivable 200
Feb 15 Account receivable 200
Allowance for doubtful accounts 200
Cash 200
Account receivable 200
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