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Assignment 4 19.Jul.2020 Newman stores had the following balance extracted from its Feb.28 balance sheet Account receivable $22,000 Dr Allowance for doubtful account 8,000 Cr
Assignment 4 19.Jul.2020
Newman stores had the following balance extracted from its Feb.28 balance sheet
Account receivable $22,000 Dr
Allowance for doubtful account 8,000 Cr
The following transactions occurred during march.
1. On March 1, Newman stores Sold merchandise on account to Primark Company for $6,500, terms 3/10. n/30.
2. On March 5, Primark Company returned merchandise worth $500 to Newman stores.
3. On March 11, Newman collected the amount due from Primark Company from the March 1 sale.
4. On March 15, Newman stores sold merchandise for $650 in its retail outlet. The customer (ahmad) used his Newman credit card.
5. On march 17, The customer ( ahmad) paid $550 of the balance.
6. On March.20, Newman stores decided that $7,000 of account receivable from previous periods will be uncollectable (Assume the company uses the allowance method).
7. On March 31, Newman stores added 1.5% monthly interest to the customers credit card balance.
Required:
A. Prepare journal entries for the transactions above in Newman store books.
B. Show the statement of financial position presentation of accounts receivable on March 31. (what is the amount)
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