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At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 900,000 300,000 Credit sales Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 125,000 debit Allowance for doubtful accounts 5,000 debit 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. View transaction list Journal entry worksheet < 1 2 3 > Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31

At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 900,000 300,000 Credit sales Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 125,000 debit Allowance for doubtful accounts 5,000 debit 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. View transaction list Journal entry worksheet < 1 2 3 > Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 33
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 900,000 300,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 125,000 debit Allowance for doubtful accounts 5,000 debit 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. View transaction list Journal entry worksheet < 1 2 3 > Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31
Transcribed Image Text:At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 900,000 300,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 125,000 debit Allowance for doubtful accounts 5,000 debit 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. View transaction list Journal entry worksheet < 1 2 3 > Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31
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