The September 30, 2023, balance sheet of Kroenke Products reported the following:

During the last quarter of 2023, Kroenke Products completed the following selected transactions:

Required

1. Record the transactions in the general journal.

2. Open the Allowance for Doubtful Accounts three-column ledger account and post entries affecting that account. Keep a running balance.

3. Most companies report 2-year comparative financial statements. If Kroenke Products’ Accounts Receivable balance was $320,000 and the Allowance for Doubtful Accounts stood at $12,000 at December 31, 2022, show how the company will report its Accounts Receivable in a comparative balance sheet for 2023 and 2022.

4. Suppose, on December 31, the bad debt expense was based on an estimate of 4 percent of the accounts receivable balance rather than on the aging of accounts receivable. Record the December 31, 2023, entry for bad debt expense in the general journal.

Transcribed Image Text:

Accounts Receivable Allowance for Doubtful Accounts (credit balance) $310,000 10,000