Journalize and post to the allowance account the following events and transactions in the year 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. 2 On March 31, a $1,000 customer balance originating in 2020 is judged uncollectible. On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31. No. Date Account Titles and Explanation Mar. 31 1. May 31 May 31 (To reverse write-off) (To record collection of writebft) Allowance for Doubtful Accounts Date Dec. 31, 2020 Dec. 31, 2020 Explanation Ref. Balance Adjusting Debit Debit Credit 27,187 Credit Balance 11,400 38,587
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.
Do not give answer in image
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
