Green Corporation uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record...
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Accounting
Green Corporation uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions: (10 marks)
a. Jan 5, sold merchandise to Eric for $2,500, terms 2/10 n/20. The merchandise sold cost $1,400. b. Jan 12, received $1,500 from Eric as part payment for the previous purchase. c. Feb 8, received $500 from Eric as part payment for the previous purchase. d. May 9, wrote off as uncollectible the balance due from Eric when he declared bankruptcy. e. Aug 5, received a cheque for $350 from Eric. No further collections are expected.
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