During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior experience, it estimates a 4.5 percent bad debt rate on credit sales. Required: 1. Prepare journal entries for each of the following transactions. a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. 2. Complete the following table, indicating the amount and effect for each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for each of the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. Show lessA No Transaction General Journal Debit Credit a. Allowance for doubtful accounts 2,800 Accounts receivable 2,800 2 b. Bad debt expense 2,800 O Allowance for doubtful accounts 2.800 O
During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior experience, it estimates a 4.5 percent bad debt rate on credit sales. Required: 1. Prepare journal entries for each of the following transactions. a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. 2. Complete the following table, indicating the amount and effect for each transaction. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for each of the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. Show lessA No Transaction General Journal Debit Credit a. Allowance for doubtful accounts 2,800 Accounts receivable 2,800 2 b. Bad debt expense 2,800 O Allowance for doubtful accounts 2.800 O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior experience, it estimates a 4.5 percent
bad debt rate on credit sales.
Required:
1. Prepare journal entries for each of the following transactions.
a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was
written off.
b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year.
2. Complete the following table, indicating the amount and effect for each transaction.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare journal entries for each of the following transactions. (If no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible
and was written off.
b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year.
Show lessA
No
Transaction
General Journal
Debit
Credit
a.
Allowance for doubtful accounts
2,800
Accounts receivable
2,800
2
b.
Bad debt expense
2,800 O
Allowance for doubtful accounts
2.800 O
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