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On February 28, Pharoah Company had accounts receivable in the amount of $393,300 and Allowance for Doubtful Accounts had a credit balance of $1,927 before adjustment. Net credit sales for February amounted to $2,700,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $5,490 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. > Show Transcribed Text a) Your answer is partially correct. 3 C

On February 28, Pharoah Company had accounts receivable in the amount of $393,300 and Allowance for Doubtful Accounts had a credit balance of $1,927 before adjustment. Net credit sales for February amounted to $2,700,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $5,490 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. > Show Transcribed Text a) Your answer is partially correct. 3 C

FINANCIAL ACCOUNTING
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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On February 28, Pharoah Company had accounts receivable in the amount of $393,300 and Allowance for Doubtful Accounts had a credit balance of $1,927 before adjustment. Net credit sales for February amounted to $2,700,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $5,490 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. Show Transcribed Text (a) Prepare journal entries made by Pharoah Company the ving dates punt titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) 1. 2. 3. Date Feb. 28 Mar. 10 Mar. 31 Your answer is partially correct. (b) February 28 March 10 March 31 Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable Show Transcribed Text 3 Debit Balance of Allowance for Doubtful Accounts at March 31 $ 270000 5490 5490 Credit 270000 5490 Assume no other transactions occurred that affected the allowance account during March. Determine the balance of Allowance for Doubtful Accounts at March 31.
Transcribed Image Text:On February 28, Pharoah Company had accounts receivable in the amount of $393,300 and Allowance for Doubtful Accounts had a credit balance of $1,927 before adjustment. Net credit sales for February amounted to $2,700,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $5,490 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. Show Transcribed Text (a) Prepare journal entries made by Pharoah Company the ving dates punt titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) 1. 2. 3. Date Feb. 28 Mar. 10 Mar. 31 Your answer is partially correct. (b) February 28 March 10 March 31 Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable Show Transcribed Text 3 Debit Balance of Allowance for Doubtful Accounts at March 31 $ 270000 5490 5490 Credit 270000 5490 Assume no other transactions occurred that affected the allowance account during March. Determine the balance of Allowance for Doubtful Accounts at March 31.
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