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Crane Ltd$.$ has been in business for several years and has the following information for its operations which ended December $31,$

$2024$:

Total sales for the year were $$3,510,000,$ of which $60\%$ were on account.

The company estimates that total expected credit losses at December $31,2024$ will be $$94,770.$

Crane Ltd$.$ began the year with $$650,000$ in accounts receivable and a normal credit to the allowance for expected credit

losses of $$74,000.$

Crane Ltd$.$ writes off customer accounts that have been outstanding for more than $120$ days. During the year, accounts with a

carrying amount of $$76,000$ reached the $120-$day mark and were written off.

The company uses a collection agency to try to collect accounts that have been written off. The collection agency was able to

collect $$23,000$ from customers whose accounts had previously been written off.

During the year the company collected $$1,840,000$ of its accounts receivable.

$($a$)$

Your answer is partially correct.

Prepare a summary journal entry for the credit sales and journal entries to record the above transactions on the books of Crane

Ltd$.$ on December $31,2024.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Accounts Receivable

$2106000$

Sales Revenue

$2106000$

$($To record credit sales$)$

Allowance for Expected Credit Losses

$($To recognize the credit losses$)$

Allowance for Expected Credit Losses

$($To write off accounts judged uncollectible$)$

$($To reinstate an account that was previously

written off$)$

Cash

$($To record subsequent collection of accounts

that were previously written off$)$

$($To record collection of accounts receivable$)$

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