Chinook Limited's general ledger reports a balance in Accounts Receivable of $360,000 at the end of December.
Question:
Chinook Limited's general ledger reports a balance in Accounts Receivable of $360,000 at the end of December.
Instructions
(a) Assuming that Allowance for Doubtful Accounts has a credit balance of $4,400 and that uncollectible accounts are determined to be $36,000 by aging the accounts, record the adjusting entry at December 31.
(b) Assuming the same information as in part (a) except that uncollectible accounts are expected to be 9% of total accounts receivable, record the adjusting entry at December 31.
(c) Assuming the same information as in part (a) except that the Allowance for Doubtful Accounts has a debit balance of
$2,400, record the adjusting entry at December 31.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Dec 31 Bad Debts Expense 36000 4400 31600 Allowance ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
