During its first year of operations,

World Class Sport Shoe

Inc. had sales of

$850,000,

all on account. Industry experience suggests that

World Class Sport Shoe's

bad debt expense will be

$56,100.

World Class Sport Shoe

ended the year

2019

with accounts receivable of

$70,000

and an allowance for uncollectible accounts of

$17,500.

During

2020,

World Class Sport Shoe

completed the following transactions:

1. Credit sales, $1,020,000

2. Collections on account, $900,000

3. Write-offs of uncollectibles, $14,000

4. Bad debt expense, $56,100

Journalize the

2020

transactions for

World Class Sport Shoe.

Explanations are not required.

Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.)

Journal Entry
		Accounts	Debit	Credit
1		Accounts Receivable
		Cash

Now record the collections on account during the year.

Journal Entry
		Accounts	Debit	Credit
2

Next, record the receivables that were actually written off during the year.

Journal Entry
		Accounts	Debit	Credit
3

Lastly, estimate the uncollectible amount for

2020

sales revenue on account.

Journal Entry
		Accounts	Debit	Credit
4		Bad Debt Expense