The following is information taken from the June 30, 2020, balance sheet of Tippleton Company: Accounts receivable Less: Allowance for doubtful $410,000 17,600 $392,400 accounts Part 1 During July, Tippleton Company recorded total sales of $1,093,000, all on credit. There were $39,000 of sales returns and allowances. Collections during July were $1.199,000. Total receivables identified as being uncollectible and written off during July were $24,000. Tippleton estimates bad debts as 1% of net credit sales. Required: Prepare the adjusting entry to record estimated bad debts for July. View transaction list Journal entry worksheet 1 Record the estimated uncollectible accounts. Note: Enter debits before credits. Date General Journal Debit Credit Jul 31 Record entry Clear entry View general journal
The following is information taken from the June 30, 2020, balance sheet of Tippleton Company: Accounts receivable Less: Allowance for doubtful $410,000 17,600 $392,400 accounts Part 1 During July, Tippleton Company recorded total sales of $1,093,000, all on credit. There were $39,000 of sales returns and allowances. Collections during July were $1.199,000. Total receivables identified as being uncollectible and written off during July were $24,000. Tippleton estimates bad debts as 1% of net credit sales. Required: Prepare the adjusting entry to record estimated bad debts for July. View transaction list Journal entry worksheet 1 Record the estimated uncollectible accounts. Note: Enter debits before credits. Date General Journal Debit Credit Jul 31 Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following is information taken from the June 30, 2020, balance sheet of Tippleton Company:
Accounts receivable
Less: Allowance for doubtful
$410,000
17,600 $392,400
accounts
Part 1
During July, Tippleton Company recorded total sales of $1,093,000, all on credit. There were $39,000 of sales returns and allowances.
Collections during July were $1,199,000. Total receivables identified as being uncollectible and written off during July were $24,000.
Tippleton estimates bad debts as 1% of net credit sales.
Required:
Prepare the adjusting entry to record estimated bad debts for July.
View transaction list
Journal entry worksheet
Record the estimated uncollectible accounts.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Jul 31
Record entry
Clear entry
View general journal
Expert Solution
Step 1
First, compute the net credit sales as shown below:
Net credit sales = $1,093,000 - $39,000
Net credit sales = $1,054,000
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