Dr. Accounts Receivable 5,000

Cr. Allowance for Doubtful Accounts 5,000

Dr. Cash 5,000

Cr. Accounts Receivable 5,000

What would be an appropriate journal entry descriptions for this transactions?

Based on the following transactions, prepare the necessary journal entries. 8 points:

a. During the first year of its business, Cougar Corp. sold services totaling $270,000 were sold on credit.

b. During the first year, Cougar Corp. collected $210,000 in cash for the credit sales made during the year. c. During the first year, Cougar Corp. properly wrote off $5,500 of its accounts receivable as they were deemed uncollectible. d. Assume that Cougar Corp. estimates bad debts using the percent-of-receivables method. Cougar Corp. did analysis and has estimated that 8% of their accounts receivable are uncollectible. Note: In order to complete this entry, you have to consider the facts from a., b., and c.