Shamrock Company Shamrock Company sells their merchandise only on account. The following data are available...
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Accounting
Shamrock Company
Shamrock Company sells their merchandise only on account. The following data are available at December 31, 2014.
Sales
$512,000
Sales returns and allowances
Sales discounts
10,000
2,000
Allowance for doubtful accounts at January 1, 2014 (credit balance)
3,500
Accounts receivable, December 31, 2014
200,000
1.Prepare the journal entry necessary on December 31, 2014 if the company estimates that bad debt expense should be 2% of net credit sales.
2.Prepare the journal entry necessary on December 31, 2014 if the company estimates that 5% of accounts receivable will be uncollectible.
3.Assume that the Allowance for Doubtful Accounts at January 1, 2014 has a debit balance of $2,500. Prepare the journal entry necessary on December 31, 2014 if the company estimates that 5% of accounts receivable will be uncollectible.
4.Assume that on March 1, 2015, the company writes off an uncollectible account in the amount of $1,500. Prepare the necessary journal entry on March 1st.
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