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Magic Cleaning Co.had these account balances at the end of the calendar year.
Account Receivable- $541,300
Allowance for Bad Debts-$10,912
Transactions:
1. Sales made on credit amounted to $5,456,575
2. Cash sales made during the year amounted to $ $121,214
3. Collections of accounts during the year: actual cash collected $5,381,642, sales discounts allowed $130,004.
4. Wrote off uncollectible accounts amounting to $9,280.
5. Collected $2,340 for an account that had previously been written off.
6. Made the adjusting entry to recognize bad debts based on 1% of net credit sales for the year.
Make entries in general journal form, and post to the Allowance for Bad debts "T" account only.
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