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Prepare journal entries for the following transactions that occurred for a company in its first year...

Prepare journal entries for the following transactions that occurred for a company in its first year of operations.

  • Year One sales: $2,500,000 total, of which $2,200,000 were sales on account.
  • Year One collections of accounts receivable: $1,430,000.
  • Year One write-offs: $26,000
  • 12/31/Y1: Year-end adjustment to record estimated uncollectible accounts at 4% of credit sales.

Directions: Prepare all journal entries, post to accounts, and show the year-end balance sheet presentation of accounts receivable.

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