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At January 1, 2018, Roger Imports Inc. reported the following on its statement of financial position: Accounts receivable $1,772,000 Allowance for doubtful accounts 126,000 During
At January 1, 2018, Roger Imports Inc. reported the following on its statement of financial position:
Accounts receivable | $1,772,000 | ||
Allowance for doubtful accounts | 126,000 |
During 2018, the company had the following summary transactions for receivables:
1. | Sales on account, $5,365,000; Cost of goods sold, $2,964,000 | ||
2. | Sales returns and allowances, $75,000; Cost of goods returned to inventory, $40,000 | ||
3. | Collections of accounts receivable, $5,365,000 | ||
4. | Interest added to overdue accounts, $405,000 | ||
5. | Write offs of accounts receivable deemed uncollectible, $149,000 | ||
6. | Collection of accounts previously written off as uncollectible, $66,000 | ||
7. | After considering all of the above transactions, total estimated uncollectible accounts, $105,000
Prepare journal entries to record each of the above summary transactions. |
(1) Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts, (2) enter the opening balances, (3) post the above summary entries, and (4) determine the ending balances.
No. Account Titles and Explanation Debit Credit 1. (To record sales) To record cost of goods sold) 2. (To record sales returns) (To record cost of goods returned) 3. 4
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