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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

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 13EB: Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an...
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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
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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