Question

#1 The balance sheet of Teal Company at December 31, 2019, includes the following. Notes receivable...

#1 The balance sheet of Teal Company at December 31, 2019, includes the following.

Notes receivable $37,800
Accounts receivable 189,600
Less: Allowance for doubtful accounts 20,400 $207,000


Transactions in 2020 include the following.

A. Accounts receivable of $140,500 were collected including accounts of $65,800 on which 3% sales discounts were allowed.
B. $5,500 was received in payment of an account which was written off the books as worthless in 2019.
C. Customer accounts of $20,600 were written off during the year.
D. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $23,100. This estimate is based on an analysis of aged accounts receivable.


Prepare all journal entries necessary to reflect the transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Answer #2

Journal entries

No General Journal Debit Credit
a Cash 138526
Sales discount (65800*3%) 1974
Account receivable 140500
b Account receivable 5500
Allowance for doubtful accounts 5500
(To record reinstated)
Cash 5500
Account receivable 5500
(To record collection)
c Allowance for doubtful accounts 20600
Account receivable 20600
d Bad debt expense (23100-5300) 17800
Allowance for doubtful accounts 17800
answered by: anonymous
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