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During the current year 2018 carlson inc. had credit sales of $4,000,000 and 75 % of...

During the current year 2018 carlson inc. had credit sales of $4,000,000 and 75 % of the credit sales was collected in cash. The company estimated that 2% of the credit sales would be uncollectablbe. During the year 2019 one of the carlsons credit customers, lemon comapny, with an account balance of $5000 was judged to be uncollectible and written off. what are the necessary journal entries to record?

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Answer #1
Debit Credit
1 Accounts Receivable 4000000
       Sales revenue 4000000
(To record credit sales)
2 Cash 3000000 =4000000*75%
        Accounts Receivable 3000000
(To record cach collected)
3 Uncollectible accounts expense 80000 =4000000*2%
      Allowance for uncollectible accounts 80000
(To record uncollectible accounts expense)
4 Allowance for uncollectible accounts 5000
        Accounts Receivable 5000
(To write off uncollectible account)
Note:Uncollectible accounts expense is also known as Bad debts expense
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