Fan-Tastic Sports Gear Inc. DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Jan. 17 Sales 9,600.00 Bad Debt Expense 9,600.00 17 Bad Debt Expense 9,600.00 Accounts Receivable-U'S Sports Corp. 9,600.00 21 Cash 10,700.00 Bad Debt Expense 2,200.00 Accounts Receivable-Four Seasons Sportswear Co. 12,900.00 Feb. 15 Accounts Receivable-Healthy Running Inc. 3,000.00 Bad Debt Expense 500.00 10 Sales 3,500.00 11 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. 2,200.00 12 Bad Debt Expense 2,200.00 13 4 Cash 2,200.00 14 Bad Debt Expense 2,200.00 15 13 Cash 5,540.00 16 Accounts Receivable-Barb's Best Gear 5,540.00 17 31 Bad Debt Expense 20,970.00 Accounts Receivable-Healthy Running Inc. 5,150.00 18 19 Accounts Receivable-The Locker Room 4,100.00 Accounts Receivable-d's Sports Corp. 2,780.00 20 21 Accounts Receivable-Get Your Gear Inc. 7,050.00 22 Accounts Receivable-Ready-2-Go 1,890.00 Recording Uncollectible Receivables Revised Journal Entries n-Tastic Sports Gear Inc. Note Receivable Final Questions Revised Journal Entries DATE DESCRIPTION POST. REF. Jan. 17 DEBIT CREDIT ASSETS LIABILITIES EQUITY 9,600.00 2. Allowance for Doubtful Accounts 9,600.00 17 Sales 9,600.00 Allowance for Doubtful Accounts 9,600.00 Sales 2.00 21 Cash 3,500.00 1. Sales 500.00 Allowance for Doubtful Accounts 3,000.00 6. 15 Allowance for Doubtful Accounts 3,500.00 10 Sales 3,500.00 Mar. 4 Allowance for Doubtful Accounts 2,200.00 11 2,200.00 12 Sales 2,200.00 13 Cash 2,200.00 14 ALllowance for Doubtful Accounts 5,540.00 13 Cash 15 5,540.00 16 Allowance for Doubtful Accounts 2.00 31 Sales 17 20,970.00 Allowance for Doubtful Accounts 20,970.00 18 Cash 19
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
background info:
Green checkmark means that entry is correct, red is wrong. There is only supposed to be a total of 19 entries. look at 1 picture with the complete journal and adjust to fit the allowance method to go into the second table with green and red corrections.
The first entry....you are removing the account so you have to remove the allowance and related receivable (2 parts)
The second entry...you want to record the cash received, the removal of the allowance and related receivable (3 parts)
The third entry...recording a credit sales (2 parts)
The fourth entry...setting up receivable and the allowance (2 parts)
The fifth entry...record collection of a previously recorded credit sale (2 parts)
The sixth entry...record collection of a previously recorded credit sale (2 parts)
The seventh entry...adjusting the allowance by reducing the allowance and reducing 5 customer receivable accounts (6 parts)
1. Finalize the
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