Beta Watches completed the following selected transactions during 2024 and 2025 (Click the icon to view the transactions.) Read the requirements Requirement 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts (Record debits first, then credits. Exclude explanations from joumal entries. Abbreviations used: Adj. Adjusting entry, Clos Closing entry, W/O Write-off.) Begin by recording the 2024 transactions in the general journal Dec. 31: Estimated that bad debts expense for the year was 3% of credit sales of $430,000 and recorded that amount as expense. The company uses the allowance method. Date 2024 Dec. 31 (Adj.) Accounts and Explanation Requirements Debit Credit 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts 2. Assume the December 31, 2025, balance of Accounts Receivable is $138,000 Show how net accounts receivable would be reported on the balance sheet at that date. Print Done More info 2024 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $430,000 and recorded that amount as expense. The company uses the allowance method Dec. 31 Made the closing entry for bad debts expense. 2025 Jan. 17 Jun. 29 Sold merchandise inventory to Malcom Monet, $800, on account. Ignore Cost of Goods Sold Wrote off Malcom Monet's account as uncollectible after repeated efforts to collect from him Aug. 6 Dec. 31 Dec. 31 Received $800 from Malcom Monet, along with a letter apologizing for being so late. Reinstated Monet's account in full and recorded the cash receipt Made a compound entry to write off the following accounts as uncollectible: Brandon Kitter, $1,700. Marie Cuty $1.400, and Rupert Robertson, $450 Estimated that bad debts expense for the year was 3% on credit sales of $500,000 and recorded the expense Dec. 31 Made the closing entry for bad debts expense. Print Done
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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