A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $136,000 Account Titles and Explanation 7,800 Credit $680 586,000 Prepare year-end adjusting journal entries assuming that the estimate of uncollectible accounts is determined by taking: (1) 6% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) Account Titles and Explanation Debit (2) 4% of gross accounts receivable (assuming a $680 debit allowance account balance). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) Credit Debit Credit
A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $136,000 Account Titles and Explanation 7,800 Credit $680 586,000 Prepare year-end adjusting journal entries assuming that the estimate of uncollectible accounts is determined by taking: (1) 6% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) Account Titles and Explanation Debit (2) 4% of gross accounts receivable (assuming a $680 debit allowance account balance). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) Credit Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:A trial balance before adjustment included the following:
Accounts receivable
Allowance for doubtful accounts
Sales revenue
Sales returns and allowances
Debit
$136,000
Account Titles and Explanation
7,800
Save for Later
Credit
$680
Prepare year-end adjusting journal entries assuming that the estimate of uncollectible accounts is determined by taking:
(1) 6% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.
List debit entry before credit entry)
Account Titles and Explanation
586,000
Debit
(2) 4% of gross accounts receivable (assuming a $680 debit allowance account balance). (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. List debit entry before credit entry)
Credit
Debit
Credit
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