Kelly Klothing Designs started the current year with the following account balances related to its customer accounts:

Kelly reported credit sales of $1,211,800 for the current year. The company collected $56,000 on account and determined that a $35,000 account due from Cruze Company was uncollectible.

Required
Prepare the journal entries required for each of the following events:
a. Credit sales for the current year. Ignore the effects on cost of goods sold and inventory.
b. Cash collections for the year.
c. The write-off of the Cruze Company account.
d. The current year's provision for bad debts assuming that Kelly estimates bad debts at 15% of ending accounts receivable.

Transcribed Image Text:

Accounts Receivable Beginning Ba ance 560,000 Allowance for Uncollectible Accounts Beginning Ba ance 145.000