Part 2 During August, total sales of $1,013,000 were recorded, all on credit. Sales returns and allowances totalled $17,000. Collections during the month were $863,000, which included the recovery of $2,000 from a customer account written off in a previous month. No accounts were written off during August. Tippleton Company changed its method of estimating bad debts to the balance sheet approach because the new accountant said it more accurately reflected uncollectible accounts. The resulting aging analysis determined the total estimated uncollectible accounts at August 31 to be $15,000. Required: Prepare the August 31 adjusting entry to record estimated bad debts for August. View transaction list Journal entry worksheet < 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date Aug 31 General Journal Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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nces
Part 2
During August, total sales of $1,013,000 were recorded, all on credit. Sales returns and allowances totalled $17,000. Collections during
the month were $863,000, which included the recovery of $2,000 from a customer account written off in a previous month. No
accounts were written off during August. Tippleton Company changed its method of estimating bad debts to the balance sheet
approach because the new accountant said it more accurately reflected uncollectible accounts. The resulting aging analysis
determined the total estimated uncollectible accounts at August 31 to be $15,000.
Required:
Prepare the August 31 adjusting entry to record estimated bad debts for August.
View transaction list
Journal entry worksheet
1
Record the estimate for uncollectible accounts.
Note: Enter debits before credits.
Date
Aug 31
General Journal
Debit
Credit
Transcribed Image Text:t nces Part 2 During August, total sales of $1,013,000 were recorded, all on credit. Sales returns and allowances totalled $17,000. Collections during the month were $863,000, which included the recovery of $2,000 from a customer account written off in a previous month. No accounts were written off during August. Tippleton Company changed its method of estimating bad debts to the balance sheet approach because the new accountant said it more accurately reflected uncollectible accounts. The resulting aging analysis determined the total estimated uncollectible accounts at August 31 to be $15,000. Required: Prepare the August 31 adjusting entry to record estimated bad debts for August. View transaction list Journal entry worksheet 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date Aug 31 General Journal Debit Credit
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