P8.0H At January 1, the Chesley Company had the following accounts on its books: During...
50.1K
Verified Solution
Link Copied!
Question
Accounting
P8.0H At January 1, the Chesley Company had the following accounts on its books: During the year, credit sales were $1,622,000 and collections on account were $1,588,000. The following transactions, among others, occurred during the year: Jan. 11 Wrote off J. Smith's account, $5,600 Apr. 29 Wrote off B. Bird's account, \$2,000 Nov. 15 Received $1,000 from B. Bird to pay a debt that had been written off April 29. This amount is not included in the $1,588,000 collections noted above. Dec. 5 Wrote off D. Finger's account, $4,300 Dec. 31 In an adjusting entry, record the allowance for doubtful accounts at 1% of credit sales for the year. Required: a. Prepare journal entries to record the credit sales, the collections on account, the transactions, and the adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31 balance sheet
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
P8.0H At January 1, the Chesley Company had the following accounts on its books: During the year, credit sales were $1,622,000 and collections on account were $1,588,000. The following transactions, among others, occurred during the year: Jan. 11 Wrote off J. Smith's account, $5,600 Apr. 29 Wrote off B. Bird's account, \$2,000 Nov. 15 Received $1,000 from B. Bird to pay a debt that had been written off April 29. This amount is not included in the $1,588,000 collections noted above. Dec. 5 Wrote off D. Finger's account, $4,300 Dec. 31 In an adjusting entry, record the allowance for doubtful accounts at 1% of credit sales for the year. Required: a. Prepare journal entries to record the credit sales, the collections on account, the transactions, and the adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31 balance sheet 