Junko Enterprises uses the percentage of receivables method for estimating bad debts. At 1/1/23, Junko Enterprises had a credit balance in Allowance for Bad Debts of $900,000. Prepare journal entries for the following events: a) On Oct. 2, 2023, Junko realized that a specific account receivable of $920,000 had gone bad and had to be written off. b) An account receivable of $50,000 was collected on Oct. 25, 2023. This account had previously been written off as a bad debt in 2022. c) Junko has determined that Allowance for Bad Debts would be $970,000 at the end of 2023.

Junko Enterprises uses the percentage of receivables method for estimating bad debts. At 1/1/23, Junko Enterprises had a credit balance in Allowance for Bad Debts of $900,000. Prepare journal entries for the following events: a) On Oct. 2, 2023, Junko realized that a specific account receivable of $920,000 had gone bad and had to be written off. b) An account receivable of $50,000 was collected on Oct. 25, 2023. This account had previously been written off as a bad debt in 2022. c) Junko has determined that Allowance for Bad Debts would be $970,000 at the end of 2023.

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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