Millennium Associates records bad debt using the allowance, income statement method. They recorded $396,420 in accounts receivable for the year, and $837,270 in credit sales. The uncollectible percentage is 3.4%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,830. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018 If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Dec. 31, 2017 To record bad debt expense, income statement method B. Feb. 5, 2018 To record bad debt for identified customer C. Apr. 15, 2018 To reinstate previously written-off bad debt Аpг. 15, 2018 To record full payment

Millennium Associates records bad debt using the allowance, income statement method. They recorded $396,420 in accounts receivable for the year, and $837,270 in credit sales. The uncollectible percentage is 3.4%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,830. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018 If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. A. Dec. 31, 2017 To record bad debt expense, income statement method B. Feb. 5, 2018 To record bad debt for identified customer C. Apr. 15, 2018 To reinstate previously written-off bad debt Аpг. 15, 2018 To record full payment

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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The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
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At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $812, 000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $406 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. Please explain and elaborate!
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