3. On January 1 of the current year, Neptune, Inc. had the following accounts on its books: Accounts Receivable $240,000 (debit) Allowance for Doubtful Accounts 8,000 (credit) During this year, credit sales were $1,200,000 and collections on account were $1,160,000. a. Prepare general journal entries for the following transactions that occurred during the year: (1) Wrote off N. Purcell’s account, $6,800. (2) Wrote off J. Stein’s account, $2,400. (3) J. Stein, who is in bankruptcy, paid $800 in final settlement of the account written off in transaction. (2). This amount is not included in the $1,160,000 collections. (4) On December 31, estimated the year’s bad debts expense at 1% of credit sales. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the year-end balance sheet.
3. On January 1 of the current year, Neptune, Inc. had the following accounts on its books:
Allowance for Doubtful Accounts 8,000 (credit)
During this year, credit sales were $1,200,000 and collections on account were $1,160,000.
a. Prepare general
(1) Wrote off N. Purcell’s account, $6,800.
(2) Wrote off J. Stein’s account, $2,400.
(3) J. Stein, who is in bankruptcy, paid $800 in final settlement of the account written off in transaction. (2). This amount is not included in the $1,160,000 collections.
(4) On December 31, estimated the year’s
b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the year-end
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