complete the following journal entries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
complete the following journal entries
Transcribed Image Text:**PART 2 - Record journal entries for each of the following transactions for Company ABC.**
**December 2: Company ABC purchases inventory on account for $300.**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
**December 8: Company ABC resold the inventory from December 2nd at a markup price of $350. Discount terms: 2/10 n/30**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
**December 15: Customers returned $100 worth of the sold inventory from the December 8th sale. The original cost of the returned inventory was $70.**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
**December 16: Company ABC received payment-in-full from the December 8th sale (less the returned items).**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
**December 23: Assume the December 16th transaction took place on December 23rd instead.**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
**December 31: Record the adjusting entry for estimated uncollectible accounts. The allowance balance was $1,000 prior to adjustment. Company ABC estimates that 4% of the $40,500 balance will be uncollectible.**
| Date | Account | Debit | Credit |
|------------|----------------|-------|--------|
| | | | |
---
*Made by Dr. Baaske – Do not share.*
Transcribed Image Text:**January 2: Company ABC wrote off a customer balance of $35.**
| Date | Account | Debit | Credit |
|------|---------|-------|--------|
| | | | |
**January 25: Company ABC received full payment from the customer whose balance was previously written off on January 2.**
| Date | Account | Debit | Credit |
|------|---------|-------|--------|
| | | | |
**Additional Notes:**
- The document provides a layout for recording financial transactions related to writing off an account and then receiving a payment.
- The tables are empty, signifying a need for input of specific account names and amounts once the transactions are executed.
**Attribution:**
- Made by Dr. Baaske – Do not share.
Expert Solution
Step 1
Journal entries recording is the first step of accounting cycle process, in which atleast one account is debited and atleast one account is credited. After that, entries are posted into ledger accounts and at the last, trial balance is being prepared.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education