Question

On

JuneJune

​30,

CandyCandy

Party Planners had a

$ 35 comma 000$35,000

balance in Accounts Receivable and a

$ 2 comma 334$2,334

credit balance in Allowance for Uncollectible Accounts. During

JulyJuly​,

CandyCandy

made credit sales of

$ 192 comma 000$192,000.

JulyJuly

collections on account were

$ 168 comma 000$168,000​,

and​ write-offs of uncollectible receivables totaled

$ 2 comma 860$2,860.

​Uncollectible-accounts expense is estimated as

1 %1%

of credit sales. No sales returns are expected. Ignore cost of goods sold.

Answer 1

Journal
DATE		ACCOUNT TITLES AND EXPLANATION	DEBIT	CREDIT
July		Accounts Receivable	192,000
		Sales Revenue		192,000
July		Cash	168,000
		Accounts Receivable		168,000
July		Allowance for Uncollectible Accounts	2,860
		Accounts Receivable		2,860
July		Uncollectible-Account Expense
		($192,000 × .01)	1,920
		Allowance for Uncollectible Accounts		1,920

Accounts receivable					Allowance for Accounts receivable
balance	35000	cash	168,000				balance	2334
sales	192,000	w/off	2,860		w/off	2,860	bad debts	1,920
balance	56,140						balance	1,394

BALANCE SHEET (Partial)
Current assets:
Accounts receivable		56,140
Less: Allowance for uncollectible accounts		-1,394
Accounts receivable, net		54,746
IINCOME STATEMENT (Partial)
Sales revenue		192,000