On February 28, Wildhorse Company had accounts receivable in the amount of $568,100 and Allowance for Doubtful Accounts had a credit balance of $2,782 before adjustment. Net credit sales for February amounted to $3,900,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $7,930 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. (a) Prepare the journal entries made by Wildhorse Company on the following dates: (Credit account 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. February 28 March 10 March 31

On February 28, Wildhorse Company had accounts receivable in the amount of $568,100 and Allowance for Doubtful Accounts had a credit balance of $2,782 before adjustment. Net credit sales for February amounted to $3,900,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $7,930 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. (a) Prepare the journal entries made by Wildhorse Company on the following dates: (Credit account 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. February 28 March 10 March 31

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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