DE8-8 Link Back to Chapter 5 (Recording Sales Transactions). Guardian Medical Group started 20X0 with accounts receivable
Question:
DE8-8 Link Back to Chapter 5 (Recording Sales Transactions). Guardian Medical Group started 20X0 with accounts receivable of $120,000 and an allowance for uncollectible accounts of $6,000. The 20X0 credit sales were $800,000, and cash collections on account totaled $720,000. During 20X0. Guardian wrote off uncollectible accounts receivable of $12.000. At December 31, 20X0, the aging of accounts receivable indicated that Guardian will not collect $4.000 of its accounts receivable. Journalize Guardian's
(a) credit sales (ignore cost of goods sold).
(b) cash collections on account.
(c) write-offs of uncollectible receivables, and
(d) uncollectible-account expense for the year. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of uncollectible-account expense for the year.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones