1. 2. Assume Lakeside had an unadjusted $2,200 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lakeside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. Assume Lakeside had an unadjusted $1,700 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lakeside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method.
1. 2. Assume Lakeside had an unadjusted $2,200 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lakeside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. Assume Lakeside had an unadjusted $1,700 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lakeside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Please do not give solution in image format ?
Transcribed Image Text:The Accounts Receivable balance for Lakeside, Inc. at December 31, 2017, was $27,000. During 2018, Lakeside earned revenue of $452,000
on account and collected $321,000 on account. Lakeside wrote off $6,300 receivables as uncollectible. Industry experience suggests that
uncollectible accounts will amount to 3% of accounts receivable.
Read the requirements.
Requirement 1. Assume Lakeside had an unadjusted $2,200 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize
Lakeside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then
credits. Select the explanation on the last line of the journal entry table.)
Accounts and Explanation
Date
Dec. 31
Debit
Credit
Transcribed Image Text:1.
2.
Requirements
-
X
Assume Lakeside had an unadjusted $2,200 credit balance in Allowance for Bad
Debts at December 31, 2018. Journalize Lakeside's December 31, 2018,
adjustment to record bad debts expense using the percent-of-receivables method.
Assume Lakeside had an unadjusted $1,700 debit balance in Allowance for Bad
Debts at December 31, 2018. Journalize Lakeside's December 31, 2018,
adjustment to record bad debts expense using the percent-of-receivables method.
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