The following balances have been taken from the books of XYZ Company on December 31, 2016. 1) Total sales on credit during the year is 540,000 2) Sales return on credit 108,000 3) An amount was granted as sales discount 27,000 4) Cash collection during the year from customers whom credit sales were made 135,000 Allowance for bad debts account is maintained at 10% of accounts receivable balance at the end of the period. Required: Pass journal entries to record the above transactions and prepare account receivable ledger account.
The following balances have been taken from the books of XYZ Company on December 31, 2016. 1) Total sales on credit during the year is 540,000 2) Sales return on credit 108,000 3) An amount was granted as sales discount 27,000 4) Cash collection during the year from customers whom credit sales were made 135,000 Allowance for bad debts account is maintained at 10% of accounts receivable balance at the end of the period. Required: Pass journal entries to record the above transactions and prepare account receivable ledger account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do it in handwritten
Transcribed Image Text:The following balances have been taken from the books of XYZ Company on December 31, 2016.
1) Total sales on credit during the year is 540,000
2) Sales return on credit 108,000
3) An amount was granted as sales discount 27,000
4) Cash collection during the year from customers whom credit sales were made 135,000
Allowance for bad debts account is maintained at 10% of accounts receivable balance at the end of the
period.
Required:
Pass journal entries to record the above transactions and prepare account receivable ledger
account.
Calculate bad debts expense and give adjusting entry. Also prepare allowance for bad debts
ledger account.
Prepare partial balance sheet as on December 31, 2016.
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