On February 28, kerly company had accounts receivable in the amount of $437000 and alowance doubtful accounts had a credit balanace of$2140 before adjustment . Net credit sale for February amounted to be $3000000. The credit manager estimated that uncollectible accounts expense would amount to 2% of accounts receivable at February 28 on march 10, an accounts receivable from Kathy black for $6100 was determined to be uncollectible and written of .however, on march 31, black received an inherent ancestors and immediately paid her past due account in full prepare the journal entries made by Keller company on the following date 1 February 28 2.march 10 3.march 31
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.
On February 28, kerly company had
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