During the year ended December Kelly's Camera Shop had sales revenue of
$ of which $ was on credit. At the start of Accounts Receivable
showed a $ debit balance and the Allowance for Doubtful Accounts showed a
$ credit balance. Collections of accounts receivable during amounted to
$
Data during follow:
a On December a customer balance of $ from a prior year was determined to
be uncollectible, so it was written off.
b On December a decision was made to continue the accounting policy of basing
estimated bad debt losses on percent of credit sales for the year.
Required:
Give the required journal entries for the two events in December.
a Show how the amounts related to Bad Debt Expense would be reported on the
income statement.
b Show how the amounts related to Accounts Receivable would be reported on the
balance sheet.
On the basis of the data available, does the percent rate appear to be
reasonable?
Complete this question by entering your answers in the tabs below.
Give the required journal entries for the two events in December. If no entry is required for a
Required" in the first account field.
