Al Bakara company report the following results for its calendar year December 31,2021. Cash sales 310,000 Credit sales 220,000 Account receivable 44,000 (debit) Account payable 78,000 (credit) Allowances for doubtful accounts 7,000 (debit) The company bad debts estimated to be 2%of annual total sale. Required: 1- Prepare the adjusting entry to record the estimated bad debt. Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash........... .120 Gr. Qwpor capital 130
Al Bakara company report the following results for its calendar year December 31,2021. Cash sales 310,000 Credit sales 220,000 Account receivable 44,000 (debit) Account payable 78,000 (credit) Allowances for doubtful accounts 7,000 (debit) The company bad debts estimated to be 2%of annual total sale. Required: 1- Prepare the adjusting entry to record the estimated bad debt. Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash........... .120 Gr. Qwpor capital 130
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...
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![Al Bakara company report the following results for its calendar year December 31,2021.
Cash sales
310,000
Credit sales
220,000
Account receivable
44,000 (debit)
Account payable
78,000 (credit)
Allowances for doubtful accounts
7,000 (debit)
The company bad debts estimated to be 2%of annual total sale.
Required:
1- Prepare the adjusting entry to record the estimated bad debt.
Answer in the following format [Note: This is just an example and is not related to the question]
Jan 1 Dr. Cash.........
.120
Cr. Owner capital ..............120
2- Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on Al Bakara company December 31 balance sheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcce79d48-a13b-40c4-b03d-4df4bbeb45a1%2F807efea7-e1c0-4a77-a372-f5c40b907d2f%2Fsezcxkb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Al Bakara company report the following results for its calendar year December 31,2021.
Cash sales
310,000
Credit sales
220,000
Account receivable
44,000 (debit)
Account payable
78,000 (credit)
Allowances for doubtful accounts
7,000 (debit)
The company bad debts estimated to be 2%of annual total sale.
Required:
1- Prepare the adjusting entry to record the estimated bad debt.
Answer in the following format [Note: This is just an example and is not related to the question]
Jan 1 Dr. Cash.........
.120
Cr. Owner capital ..............120
2- Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on Al Bakara company December 31 balance sheet.
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