Homework Help is Here – Start Your Trial Now!
Business
Accounting
During its first year of operations, Precious Gems Collection Inc. had sales of $825.000, all on account Industry experience suggests that Precious Gems Collection's bad debt expense will be $43.600. Precious Gems Collection ended the year 2019 with accounts receivable of 500.000 and an allowance for uncollectible accounts of $17.500. During 2020, Precious Gems Collection completed the following transactions 1. Credit sales, $1,000,000 2. Collections on account 5805.000 3. White-offs of uncollectibles, $19.000 4. Bad debt expense. 343.600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable Allowance for Uncollectible Accounts Bad Debt Expense Cash Next Sales Revenue 2. 3. Accounts 4. Y ebit ▾ ining the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account Accounts Debit Credit Credit GE

During its first year of operations, Precious Gems Collection Inc. had sales of $825.000, all on account Industry experience suggests that Precious Gems Collection's bad debt expense will be $43.600. Precious Gems Collection ended the year 2019 with accounts receivable of 500.000 and an allowance for uncollectible accounts of $17.500. During 2020, Precious Gems Collection completed the following transactions 1. Credit sales, $1,000,000 2. Collections on account 5805.000 3. White-offs of uncollectibles, $19.000 4. Bad debt expense. 343.600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable Allowance for Uncollectible Accounts Bad Debt Expense Cash Next Sales Revenue 2. 3. Accounts 4. Y ebit ▾ ining the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account Accounts Debit Credit Credit GE

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Dd.5.

During its first year of operations, Precious Gems Collection Inc. had sales of $825,000, all on account. Industry experience suggests that Precious Gems Collection's bad debt expense will be $43,600. Precious Gems Collection ended the year 2019 with accounts receivable of $90,000 and an allowance for uncollectible accounts of $17,500. During 2020, Precious Gems Collection completed the following transactions: 1. Credit sales, $1,090,000 2. Collections on account, $885,000 3. Write-offs of uncollectibles, $19.000 4. Bad debt expense, $43,600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable 2. 3. Allowance for Uncollectible Accounts Next. Sales Revenue Bad Debt Expense Cash 4. Accounts ▼ ebit T ring the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account. Accounts Debit Credit Credit (...
Transcribed Image Text:During its first year of operations, Precious Gems Collection Inc. had sales of $825,000, all on account. Industry experience suggests that Precious Gems Collection's bad debt expense will be $43,600. Precious Gems Collection ended the year 2019 with accounts receivable of $90,000 and an allowance for uncollectible accounts of $17,500. During 2020, Precious Gems Collection completed the following transactions: 1. Credit sales, $1,090,000 2. Collections on account, $885,000 3. Write-offs of uncollectibles, $19.000 4. Bad debt expense, $43,600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable 2. 3. Allowance for Uncollectible Accounts Next. Sales Revenue Bad Debt Expense Cash 4. Accounts ▼ ebit T ring the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account. Accounts Debit Credit Credit (...
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS