#2 (8 points) At December 31 of the current year, a company reported the following: Total sales for the current year: $5,350,000. Accounts receivable balance at Dec. 31, end of current year: $850,000 Allowance for Doubtful Accounts balance at Dec. 31: $8,000 debit 1. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 2.5% of credit sales. (b) 7% of accounts receivable. 2. Prepare the necessary entry to write off J. Mohr's $1,250 A/R balance. 3. Prepare the necessary entries to record the recovery of J. Mohr's A/R balance when he pays the company at later date. Part 1a Part 1b Part 2 Part 3 Accounts Debit Credit Show work below:
#2 (8 points) At December 31 of the current year, a company reported the following: Total sales for the current year: $5,350,000. Accounts receivable balance at Dec. 31, end of current year: $850,000 Allowance for Doubtful Accounts balance at Dec. 31: $8,000 debit 1. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 2.5% of credit sales. (b) 7% of accounts receivable. 2. Prepare the necessary entry to write off J. Mohr's $1,250 A/R balance. 3. Prepare the necessary entries to record the recovery of J. Mohr's A/R balance when he pays the company at later date. Part 1a Part 1b Part 2 Part 3 Accounts Debit Credit Show work below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format... And fast answering please and provide steps by steps solution and give solution in table mod.....
Transcribed Image Text:#2 (8 points) At December 31 of the current year, a company reported the following:
Total sales for the current year: $5,350,000.
Accounts receivable balance at Dec. 31, end of current year: $850,000
Allowance for Doubtful Accounts balance at Dec. 31: $8,000 debit
1. Prepare the necessary adjusting entries to record bad debts expense assuming this
company's bad debts are estimated to equal:
(a) 2.5% of credit sales.
(b) 7% of accounts receivable.
2. Prepare the necessary entry to write off J. Mohr's $1,250 A/R balance.
3. Prepare the necessary entries to record the recovery of J. Mohr's A/R balance when he
pays the company at later date.
Part 1a
Part 1b
Part 2
Part 3
Accounts Debit Credit
Show work below:
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