Sparkle Watches completed the following selected transactions during 2025 and 2026: View the transactions. Read the requirements. Requirement 1. Journalize the transactions (omit explanations). Open T-accounts for Allowance for Bad Debts and Bad Debts Expense, assuming the accounts begin with a zero balance. Post the transactions to the two T-accounts. (Record debits first, then credits. Exclude explanations from journal entries. Abbreviations used: Adj. = Adjusting entry, Clos. = Closing entry, W/O = Write-off.) Begin by recording the 2025 transactions in the general journal. Dec. 31: Estimated that bad debts expense for the year was 2% of credit sales of $460,000 and recorded that amount as expense. The company uses the allowance method. Date 2025 Dec. 31 (Adj.) Accounts Dec. 31: Made the closing entry for bad debts expense. Date 2025 Dec. 31 (Clos.) Accounts Debit Credit Transactions 2025 Dec. 31 Estimated that bad debts expense for the year was 2% of credit sales of $460,000 and recorded that amount as expense. The company uses the allowance method. Dec. 31 Made the closing entry for bad debts expense. Debit Credit 2026 Jan. 17 Jun. 29 Aug. 6 Dec. 31 Dec. 31 Sold merchandise inventory to Monet Jewelry, $600, on account. Ignore Cost of Goods Sold. Wrote off Monet Jewelry's account as uncollectible after repeated efforts to collect from the company. Received $600 from Monet Jewelry, along with a letter apologizing for being so late. Reinstated Monet Jewelry's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Canadian Jewels, $1,700; Vetter Vintage, $1,400; and Robertson Boutique, $350. Estimated that bad debts expense for the year was 2% on credit sales of $520,000 and recorded the expense. Dec. 31 Made the closing entry for bad debts expense. Now record the 2026 transactions in the general journal. Jan. 17: Sold inventory to Monet Jewelry, $600, on account. Ignore Cost of Goods Sold. Date 2026 Accounts Debit Credit Print Done

Sparkle Watches completed the following selected transactions during 2025 and 2026: View the transactions. Read the requirements. Requirement 1. Journalize the transactions (omit explanations). Open T-accounts for Allowance for Bad Debts and Bad Debts Expense, assuming the accounts begin with a zero balance. Post the transactions to the two T-accounts. (Record debits first, then credits. Exclude explanations from journal entries. Abbreviations used: Adj. = Adjusting entry, Clos. = Closing entry, W/O = Write-off.) Begin by recording the 2025 transactions in the general journal. Dec. 31: Estimated that bad debts expense for the year was 2% of credit sales of $460,000 and recorded that amount as expense. The company uses the allowance method. Date 2025 Dec. 31 (Adj.) Accounts Dec. 31: Made the closing entry for bad debts expense. Date 2025 Dec. 31 (Clos.) Accounts Debit Credit Transactions 2025 Dec. 31 Estimated that bad debts expense for the year was 2% of credit sales of $460,000 and recorded that amount as expense. The company uses the allowance method. Dec. 31 Made the closing entry for bad debts expense. Debit Credit 2026 Jan. 17 Jun. 29 Aug. 6 Dec. 31 Dec. 31 Sold merchandise inventory to Monet Jewelry, $600, on account. Ignore Cost of Goods Sold. Wrote off Monet Jewelry's account as uncollectible after repeated efforts to collect from the company. Received $600 from Monet Jewelry, along with a letter apologizing for being so late. Reinstated Monet Jewelry's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Canadian Jewels, $1,700; Vetter Vintage, $1,400; and Robertson Boutique, $350. Estimated that bad debts expense for the year was 2% on credit sales of $520,000 and recorded the expense. Dec. 31 Made the closing entry for bad debts expense. Now record the 2026 transactions in the general journal. Jan. 17: Sold inventory to Monet Jewelry, $600, on account. Ignore Cost of Goods Sold. Date 2026 Accounts Debit Credit Print Done

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 10RE: Use the information in RE3-6, (a) assuming Ringo Company makes reversing entries, prepare the...

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