Exercise 228 (Part Level Submission)The percentage of receivables approach to estimating bad debts expense is used by Oriole Company. On February28 (the fiscal yearend), the firm had accounts receivable in the amount of $573,000 and Allowance for DoubtfulAccounts had a credit balance of $1,850 before adjustment. Net credit sales for February amounted to $3,480,000.The credit manager estimated that uncollectible accounts would amount to 6% of accounts receivable. On March 10,an accounts receivable from Mark Dole for $2,100 was determined to be uncollectible and written off. However, onMarch 31, Dole received an inheritance and immediately paid his past due account in full.(a)Your answer is partially correct. Try again.Prepare the journal entries made by Oriole Company on the below dates: (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. Record journal entries inthe order presented in the problem.)1.February 282.March 103.March 31DateAccount Titles and ExplanationDebitCreditFeb. 28 v Accounts Receivable3480000:Sales Revenue3480000Feb. 28 vAllowance for Doubtful Accounts241330:Sales Returns and Allowances241330Mar. 10 vBad Debt Expense2100wwwwAccounts Receivable2100(To reinstate an account previously written off)Mar. 31Cash2100Bad Debt Expense2100(To record collection of payment)

Accounts receivables refers to money which is due to the firm for the goods and services provided to…

Exercise 228 (Part Level Submission) The percentage of receivables approach to estimating bad debts expense is used by Oriole Company. On February 28 (the fiscal yearend), the firm had accounts receivable in the amount of $573,000 and Allowance for Doubtful Accounts had a credit balance of $1,850 before adjustment. Net credit sales for February amounted to $3,480,000. The credit manager estimated that uncollectible accounts would amount to 6% of accounts receivable. On March 10, an accounts receivable from Mark Dole for $2,100 was determined to be uncollectible and written off. However, on March 31, Dole received an inheritance and immediately paid his past due account in full.

Exercise 228 (Part Level Submission) The percentage of receivables approach to estimating bad debts expense is used by Oriole Company. On February 28 (the fiscal yearend), the firm had accounts receivable in the amount of $573,000 and Allowance for Doubtful Accounts had a credit balance of $1,850 before adjustment. Net credit sales for February amounted to $3,480,000. The credit manager estimated that uncollectible accounts would amount to 6% of accounts receivable. On March 10, an accounts receivable from Mark Dole for $2,100 was determined to be uncollectible and written off. However, on March 31, Dole received an inheritance and immediately paid his past due account in full.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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