4. The records of Quest Company included the following accounts (with normal balances). Cash sales, current year $2,160,000 Credit sales, current year 1,620,000 Balance in accounts receivable, December 31 prior year Balance in accounts receivable, December 31 current year Balance in allowance for doubtful accounts, December 31 prior year (Cr.) Accounts written off as uncollectible during the current year The company estimates bad debts as 2% of receivables at year-end to be uncollectible. Prepare the adjusting entry at December 31 of the current year to adjust the allowance for doubtful accounts. Date Account Name Cr. Rad Debt F 324,000 Dr. 360,000 Dr. 5,400 Cr. 9,000 Dr.

4. The records of Quest Company included the following accounts (with normal balances). Cash sales, current year $2,160,000 Credit sales, current year 1,620,000 Balance in accounts receivable, December 31 prior year Balance in accounts receivable, December 31 current year Balance in allowance for doubtful accounts, December 31 prior year (Cr.) Accounts written off as uncollectible during the current year The company estimates bad debts as 2% of receivables at year-end to be uncollectible. Prepare the adjusting entry at December 31 of the current year to adjust the allowance for doubtful accounts. Date Account Name Cr. Rad Debt F 324,000 Dr. 360,000 Dr. 5,400 Cr. 9,000 Dr.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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