Q5: At December 31, 2009, Leis Co. reported the following information on its balance sheet. Account receivable $960,000 Less: Allowance for doubtful debts 80,000 During 2010, the company had the following transactions related to receivables. 1. Sales on account $3,200,000 2. Sales return and allowance 50,000 3. Collection of account receivable 2,810,000 4. Written -off account receivable deemed uncollectible 90,000 5. Recovery of bad debts previously written- off as uncollectible 24,000 Page 3 of 4 Required: a. Prepare the journal entries to record each of these five transactions. b. Enter the January 1, 2010, balances in Account Receivable and Allowance for doubtful accounts, post the entries to the two accounts, and determine balances. c. Prepare the journal entry to record doubtful debt expenses for 2010, assuming the aging schedule of account receivable indicates that expected doubtful debts are $115,000.

Q5: At December 31, 2009, Leis Co. reported the following information on its balance sheet. Account receivable $960,000 Less: Allowance for doubtful debts 80,000 During 2010, the company had the following transactions related to receivables. 1. Sales on account $3,200,000 2. Sales return and allowance 50,000 3. Collection of account receivable 2,810,000 4. Written -off account receivable deemed uncollectible 90,000 5. Recovery of bad debts previously written- off as uncollectible 24,000 Page 3 of 4 Required: a. Prepare the journal entries to record each of these five transactions. b. Enter the January 1, 2010, balances in Account Receivable and Allowance for doubtful accounts, post the entries to the two accounts, and determine balances. c. Prepare the journal entry to record doubtful debt expenses for 2010, assuming the aging schedule of account receivable indicates that expected doubtful debts are $115,000.

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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