Journalize this transactions for 2024, before starting the company for the journal entries uses the allowance method I added more imformation in the image for the background data and imformation. Transactions for 2024 1-Sales revenue on account, $113,600 (ignore Cost of Goods Sold). 2-Collections on account, $92,895 3-Write-offs of uncollectibles, $760. 4- The Company accepted a 90-day, 9%, $13,500 note receivable from a customer in exchange for 4 his account receivable. a Journalize the issuance of the note. b Journalize the collection of the principal and interest at maturity. (use 360 days) 5 Bad debts expense of $?? was recorded. (Refer to requirement 3)(about the write off) -attached is an image to the context the journal entries should be placed in
Journalize this transactions for 2024, before starting the company for the journal entries uses the allowance method I added more imformation in the image for the background data and imformation. Transactions for 2024 1-Sales revenue on account, $113,600 (ignore Cost of Goods Sold). 2-Collections on account, $92,895 3-Write-offs of uncollectibles, $760. 4- The Company accepted a 90-day, 9%, $13,500 note receivable from a customer in exchange for 4 his account receivable. a Journalize the issuance of the note. b Journalize the collection of the principal and interest at maturity. (use 360 days) 5 Bad debts expense of $?? was recorded. (Refer to requirement 3)(about the write off) -attached is an image to the context the journal entries should be placed in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Journalize this transactions for 2024, before starting the company for the journal entries uses the allowance method
I added more imformation in the image for the background data and imformation.
Transactions for 2024
1-Sales revenue on account, $113,600 (ignore Cost of Goods Sold).
2-Collections on account, $92,895
3-Write-offs of uncollectibles, $760.
4- The Company accepted a 90-day, 9%, $13,500 note receivable from a customer in exchange for 4 his account receivable.
a Journalize the issuance of the note.
b Journalize the collection of the principal and interest at maturity. (use 360 days)
5 Bad debts expense of $?? was recorded. (Refer to requirement 3)(about the write off)
-attached is an image to the context the journal entries should be placed in
Expert Solution
Step 1: Concept Introduction on Accounts Receivable
In case of a credit sale, the customer is given an option to make payment for the sale within a specified time period and not immediately. It is a competitive market practice and increases the sales value. Such customers are assets to the company and known as Accounts Receivable.. A loss in accounts receivable i.e. bad debt is incurred when the customer does not pay the full amount due by him. It is not possible to ascertain such losses in advance, an estimate of doubtful debt based on the aging schedule is prepared and loss is recognized at the earliest.
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