At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $.906,000 306,000 Its year-end unadjusted trial balance includes the following items. $ 131,000 debit 5,600 debit Accounts receivable Allowance for doubtful accounts Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of total sales and (3) 8% of year-end accounts receivable. View transaction list Journal entry worksheet < 1 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 5% of credit sales. Date December 31 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general Journal & Exi
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $.906,000 306,000 Its year-end unadjusted trial balance includes the following items. $ 131,000 debit 5,600 debit Accounts receivable Allowance for doubtful accounts Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of total sales and (3) 8% of year-end accounts receivable. View transaction list Journal entry worksheet < 1 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 5% of credit sales. Date December 31 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general Journal & Exi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:At December 31, Folgeys Coffee Company reports the following results for its calendar year.
$.906,000
306,000
Cash sales
Credit sales
Its year-end unadjusted trial balance includes the following items.
Accounts receivable
Allowance for doubtful accounts
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of
total sales and (3) 8% of year-end accounts receivable.
View transaction list
Journal entry worksheet
<
2
Date
December 31
3
Record Bad Debts Expense assuming uncollectibles are estimated to be 5% of
credit sales.
Note: Enter debits before credits.
Record entry
$ 131,000 debit
5,600 debit
General Journal
Clear entry
Debit
Credit
View general Journal
& Ex
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