Question

January 01, 2012 – 4.5 CU April 01, 2012 – 4.85 CU October 01, 2012 – 4.8 CU December 31, 2012 – 4.9 CU periodic inventory system and average cost method I need the journal entries for the following: 1. On December 30, 2012 it has been known that one of the company’s clients, whose debt was occurred in March 2012 and equals to 1,800 CU has become bankrupt. 2. The balance of cash in foreign currency account (in USD) equaled to USD 10,500. 3. On December 30, 2012 the company has received an invoice for legal services, rendered in November 2012 in total amount of 3,200 CU. This invoice will be paid next year. 1. On December 30, 2012 it has been known that one of the company’s clients, whose debt was occurred in March 2012 and equals to 1,800 CU has become bankrupt. 2. The balance of cash in foreign currency account (in USD) equaled to USD 10,500. 3. On December 30, 2012 the company has received an invoice for legal services, rendered in November 2012 in total amount of 3,200 CU. This invoice will be paid next year. 1. On December 30, 2012 it has been known that one of the company’s clients, whose debt was occurred in March 2012 and equals to 1,800 CU has become bankrupt. 2. The balance of cash in foreign currency account (in USD) equaled to USD 10,500. 3. On December 30, 2012 the company has received an invoice for legal services, rendered in November 2012 in total amount of 3,200 CU. This invoice will be paid next year. 1. On December 30, 2012 it has been known that one of the company’s clients, whose debt was occurred in March 2012 and equals to 1,800 CU has become bankrupt. 2. The balance of cash in foreign currency account (in USD) equaled to USD 10,500. 3. On December 30, 2012 the company has received an invoice for legal services, rendered in November 2012 in total amount of 3,200 CU. This invoice will be paid next year.

Answer 1

the journal entries for the following:

1. On December 30, 2012 it has been known that one of the company’s clients, whose debt was occurred in March 2012 and equals to 1,800 CU has become bankrupt.

Journal Entry:

Date	Accounts Titles	Debit	Credit
Dec 30 2012	Bad Debt	1800 CU
	Accounts Receivable		1800 CU
	(being Client got bankrupt)

2. The balance of cash in foreign currency account (in USD) equaled to USD 10,500.

NO ENTRY REQUIRED, being no transaction take place

3. On December 30, 2012 the company has received an invoice for legal services, rendered in November 2012 in total amount of 3,200 CU. This invoice will be paid next year.

Journal Entry:

Date	Accounts Titles	Debit	Credit
Dec 30 2012	Legal Expenses	3200 CU
	Accounts Payable		3200 CU
	(being legal services bill booked and made payable)