The following transactions were selected from among those completed by Crowley Retailers. Prepare Journal entries for cach transaction On Dec 1, Sold product to customer B for $1,500 with terms of 2/10, n/30. a. b. On Dec 4, Collect cash due from customer B. The company had total sales of $60,000 of which $25,000 were credit sales and the remaining sales were cash. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Record the entry for bad debt only. с. An account receivable for $780 from a prior year was determined to be uncollectible and was written off. The company estimated depreciation on their equipment to be $750 for the year. d. Paid major overhaul of the equipment that improved efficiency for $50,000 cash.

The following transactions were selected from among those completed by Crowley Retailers. Prepare Journal entries for cach transaction On Dec 1, Sold product to customer B for $1,500 with terms of 2/10, n/30. a. b. On Dec 4, Collect cash due from customer B. The company had total sales of $60,000 of which $25,000 were credit sales and the remaining sales were cash. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Record the entry for bad debt only. с. An account receivable for $780 from a prior year was determined to be uncollectible and was written off. The company estimated depreciation on their equipment to be $750 for the year. d. Paid major overhaul of the equipment that improved efficiency for $50,000 cash.

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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