At December 31, Folgeys Coffee Company reports the following results for its calendar year Cash sales Credit sales Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts View transaction list $ 900,000 300,000 Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable. Journal entry worksheet 1 2 $ 125,000 debit 5,000 debit 3 Check my work Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales.

At December 31, Folgeys Coffee Company reports the following results for its calendar year Cash sales Credit sales Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts View transaction list $ 900,000 300,000 Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable. Journal entry worksheet 1 2 $ 125,000 debit 5,000 debit 3 Check my work Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 9SPB: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the completion of the...

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Concept explainers

Bad Debts

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

Journal entry worksheet
<
2
3
Record Bad Debts Expense assuming uncollectibles are estimated to be 1% of
total sales.
Date
December 31
Note: Enter debits before credits.
General Journal
Debit
Credit

5
8
nts
eBook
Print
erences
At December 31, Folgeys Coffee Company reports the following results for its calendar year
$ 900,000
300,000
Cash sales
Credit sales
Its year-end unadjusted trial balance includes the following items.
Accounts receivable
Allowance for doubtful accounts
View transaction list
Journal entry worksheet
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales,
(2) 1% of total sales and (3) 6% of year-end accounts receivable.
<
1
2
3
$ 125,000 debit
5,000 debit
Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of
credit sales.
Note: Enter debits before credits.
Sutimit
Check my work

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