The December 31, 2021, balance sheet of the Kingbird, Inc. had Accounts Receivable of $670,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2022, the following transactions occurred: sales on account $1,593,000; sales returns and allowances, $125,000; collections from customers, $1,294,000; accounts written off, $37,000; previously written off accounts of $8,000 were collected.(a)Journalize the 2022 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCreditEnter an account title to record sales on accountEnter a debit amountEnter a credit amountEnter an account title to record sales on accountEnter a debit amountEnter a credit amount(To record credit sales) Enter an account title to record merchandise returnedEnter a debit amountEnter a credit amountEnter an account title to record merchandise returnedEnter a debit amountEnter a credit amount(To record credits to customers) Enter an account title to record collection of receivablesEnter a debit amountEnter a credit amountEnter an account title to record collection of receivablesEnter a debit amountEnter a credit amount(To record collection of receivables) Enter an account title to write-off specific accountsEnter a debit amountEnter a credit amountEnter an account title to write-off specific accountsEnter a debit amountEnter a credit amount(To write off specific accounts) Enter an account title to reverse write-off of accountEnter a debit amountEnter a credit amountEnter an account title to reverse write-off of accountEnter a debit amountEnter a credit amount(To reverse write-off of account) Enter an account title to record collection of accountEnter a debit amountEnter a credit amountEnter an account title to record collection of accountEnter a debit amountEnter a credit amount(To record collection of account) (b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 6% of accounts receivable, what is the adjusting entry at December 31, 2022? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31Enter an account title to record the adjusting entry on December 31Enter a debit amountEnter a credit amount Enter an account title to record the adjusting entry on December 31Enter a debit amountEnter a credit amount

GIVEN : December 31, 2021 Accounts Receivable = $670,000 Credit balance in Allowance for Doubtful…

Answered: The December 31, 2021, balance sheet of…

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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(a)Journalize the 2022 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Enter an account title to record sales on account	Enter a debit amount	Enter a credit amount
Enter an account title to record sales on account	Enter a debit amount	Enter a credit amount
(To record credit sales)
Enter an account title to record merchandise returned	Enter a debit amount	Enter a credit amount
Enter an account title to record merchandise returned	Enter a debit amount	Enter a credit amount
(To record credits to customers)
Enter an account title to record collection of receivables	Enter a debit amount	Enter a credit amount
Enter an account title to record collection of receivables	Enter a debit amount	Enter a credit amount
(To record collection of receivables)
Enter an account title to write-off specific accounts	Enter a debit amount	Enter a credit amount
Enter an account title to write-off specific accounts	Enter a debit amount	Enter a credit amount
(To write off specific accounts)
Enter an account title to reverse write-off of account	Enter a debit amount	Enter a credit amount
Enter an account title to reverse write-off of account	Enter a debit amount	Enter a credit amount
(To reverse write-off of account)
Enter an account title to record collection of account	Enter a debit amount	Enter a credit amount
Enter an account title to record collection of account	Enter a debit amount	Enter a credit amount
(To record collection of account)

(b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 6% of accounts receivable, what is the adjusting entry at December 31, 2022? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Enter an account title to record the adjusting entry on December 31	Enter a debit amount	Enter a credit amount
	Enter an account title to record the adjusting entry on December 31	Enter a debit amount	Enter a credit amount

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