College Accounting (Book Only): A Career Approach

13th Edition

ISBN: 9781337280570

Author: Scott, Cathy J.

Publisher: South-Western College Pub

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Textbook Question

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Chapter B, Problem 2P

Hardy’s Landscape Service’s total revenue on account for 2018 amounted to $273,205. The company, which uses the allowance method, estimates bad debts at ½ percent of total revenue on account.

Required

Journalize the following selected entries:

2012

Dec. 12 Record services performed on account for E. E. Morton, $245.

31 Record the adjusting entry for Bad Debts Expense.

31 Record the closing entry for Bad Debts Expense.

2013

Feb. 18 Write off the account of E. E. Morton as uncollectible, $245.

Check Figure

Adjusting entry amount,

$1,366.03

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Chapter B, Problem 1P

Chapter B, Problem 3P

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Chapter B Solutions

College Accounting (Book Only): A Career Approach

Ch. B - Rogan Companys total sales on account for the year...Ch. B - Hardys Landscape Services total revenue on account...Ch. B - Nillsons Nursery uses the direct write-off method...

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Solution Summary: The author explains the accounting method used to estimate bad debts based on an estimated percentage of credit sales. Journal entries are recorded chronologically and systematically.

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