Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question:49
In 2027, Jung Company's first year of operations, the following
transactions occurred:
(a) Inventory costing $350,000 was sold on credit to customers for a
total of $500,000. Jung uses a perpetual inventory system.
(b) During the year, Jung wrote off specific customer accounts totalling
$4,000.
(c) Cash was received from customers as payment on account,
$280,000.
(d) Jung estimated that 3% of ending accounts receivable would become
uncollectible.
Required:
Prepare journal entries to record the above transactions. Date all entries
at December 31, 2027. Show supporting calculations for entry (d).
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