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FINANCIAL ACCOUNTING
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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Dd.2.

JAC Company sells sports equipment on credit. It provides for uncollectible accounts using a percentage of 6% of Accounts Receivable on December 31, 20X2 to determine the desired balance under the allowance method. On January 1, 20X2, the following selected account balances existed: DR. CR. $40,000 Accounts Receivable Allowance for Uncollectible Accounts During 20X2, the following summary transactions occurred: Sales on account were $450,000. a. b. C. 2,400 Accounts of Wingert Company, written off on September 1, 20X2, as uncollectible, totaled $6,000. Collections of customers on account were $350,000. 1. Prepare the journal entries of Transaction a, b, and c. 2. Prepare the adjusting entry for bad debts expense as of December 31, 20X2. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt > ||| > > < < ▲ < Ix ǐ
Transcribed Image Text:JAC Company sells sports equipment on credit. It provides for uncollectible accounts using a percentage of 6% of Accounts Receivable on December 31, 20X2 to determine the desired balance under the allowance method. On January 1, 20X2, the following selected account balances existed: DR. CR. $40,000 Accounts Receivable Allowance for Uncollectible Accounts During 20X2, the following summary transactions occurred: Sales on account were $450,000. a. b. C. 2,400 Accounts of Wingert Company, written off on September 1, 20X2, as uncollectible, totaled $6,000. Collections of customers on account were $350,000. 1. Prepare the journal entries of Transaction a, b, and c. 2. Prepare the adjusting entry for bad debts expense as of December 31, 20X2. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt > ||| > > < < ▲ < Ix ǐ
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