Total sales for 2021 Credit sales Sales returns (credit sales) It is the practice of the business to provide 3% of net credit sales as allowance for doubtful accounts During the year the business has written off 58,700 as bad debts and has collected $1,450 which was written off in the perious year. The business show closing balances for 2020 in Accounts Receivable Allowance for bad debts Opening balance Allowance for 800 sales 1,465,000 1,185,000 36,000 Please find out the closing balance in both Accounts Receivable and in Allowance for Bad Debts accounts for 2021 opening balance Accounts Receivable Closing balance $345,600 21,450 Accounts Receivable 345,000 Allowance for BDD 1,450 Cash 1,185,000 closing balance 1,531,450 1,521,300 Allowance for Bad debts a/c 8,700 opening balance 48670 Bad debts exp Acounts receivable 57,370 8,700 1,450 1521300 1,531,450 21,450 34,470 1,450 57,370 net credit sales bad debt exp provision is 3% Accounts Receivable Sales sees returns Dr Accounts Receivable Cr Bad debts expa/c Allowance for SOD Allowance for 800 Dr Cr ده ده ده Accounts Receivable Cr Accounts Recevable Dr Allowance for BDD Cash a/c Accounts Receivable Cr 1149000 34470 1,185,000 36,000 1,185,000 34,470 8,700 1,450 1,450 36,000 34,470 8,700 1,450 1,450
Total sales for 2021 Credit sales Sales returns (credit sales) It is the practice of the business to provide 3% of net credit sales as allowance for doubtful accounts During the year the business has written off 58,700 as bad debts and has collected $1,450 which was written off in the perious year. The business show closing balances for 2020 in Accounts Receivable Allowance for bad debts Opening balance Allowance for 800 sales 1,465,000 1,185,000 36,000 Please find out the closing balance in both Accounts Receivable and in Allowance for Bad Debts accounts for 2021 opening balance Accounts Receivable Closing balance $345,600 21,450 Accounts Receivable 345,000 Allowance for BDD 1,450 Cash 1,185,000 closing balance 1,531,450 1,521,300 Allowance for Bad debts a/c 8,700 opening balance 48670 Bad debts exp Acounts receivable 57,370 8,700 1,450 1521300 1,531,450 21,450 34,470 1,450 57,370 net credit sales bad debt exp provision is 3% Accounts Receivable Sales sees returns Dr Accounts Receivable Cr Bad debts expa/c Allowance for SOD Allowance for 800 Dr Cr ده ده ده Accounts Receivable Cr Accounts Recevable Dr Allowance for BDD Cash a/c Accounts Receivable Cr 1149000 34470 1,185,000 36,000 1,185,000 34,470 8,700 1,450 1,450 36,000 34,470 8,700 1,450 1,450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Total sales for 2021
Credit sales
Sales returns (credit sales)
It is the practice of the business to provide 3% of net credit sales as allowance for douteful accounts
During the year the business has written off $8,700 as bad debts and has collected
$1,450 which was written off in the perious year.
The business show closing balances for 2020 in
Accounts Receivable
Allowance for bad debts
Opening balance
Allowance for 800
sales
1,465,000
1,185,000
36,000
Please find out the closing balance in both Accounts Receivable and in Allowance for Bad Debts accounts
for 2021
opening balance
Accounts Receivable
Closing balance
$345,600
21,450
Accounts Receivable
345,000 Allowance for BDD
1,450 Cash
1,185,000 closing balance
1,531,450
1,521,300
Allowance for Bad debts a/c
8,700 opening balance
48670 Bad debts exp
Acounts receivable
57,370
Topening balance
8,700
1,450
1521300
1.531.450
21,450
34,470
1,450
57,370
48,670
net credit sales
bad debt exp provision is 3%
Accounts Receivable
Sales
saes returns
Dr
Accounts Receivable Cr
Bad debts expa/c Dr
Allowance for BDD Cr
- ៩ -៦ ៦៦
Allowance for 500
Accounts Receivable Cr
Or
Accounts Recevable Dr
Allowance for BDD
80
Cash a/c
Accounts Receivable Cr
1149000
34470
1,185,000
36,000
34,470
1,185,000
8,700
1,450
1,450
36,000
34,470
8,700
1,450
1,450
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