During August 2018, Lima Company recorded the following: Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods So Collections on account, $106,400. Write-offs of uncollectible receivables, $990. Recovery of receivable previously written off, $800. Requirements 1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method. 2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.
During August 2018, Lima Company recorded the following: Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods So Collections on account, $106,400. Write-offs of uncollectible receivables, $990. Recovery of receivable previously written off, $800. Requirements 1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method. 2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 5AP
Related questions
Question
![E9-21 Journalizing transactions using
allowance method
the
es 1, 2, 3
During August 2018, Lima Company recorded the following:
Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods Saia
Collections on account, $106,400.
Write-offs of uncollectible receivables, $990.
Recovery of receivable previously written off, $800.
Requirements
1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct
write-off method.
2. Journalize Lima's transactions during August 2018, assuming Lima uses the
allowance method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedee434d-fd6f-49bb-a179-14f2193234b3%2Feeeb1fae-7f14-4a8d-b94d-6a1695da5932%2Fp528zw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E9-21 Journalizing transactions using
allowance method
the
es 1, 2, 3
During August 2018, Lima Company recorded the following:
Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods Saia
Collections on account, $106,400.
Write-offs of uncollectible receivables, $990.
Recovery of receivable previously written off, $800.
Requirements
1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct
write-off method.
2. Journalize Lima's transactions during August 2018, assuming Lima uses the
allowance method.
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