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During the year ended December 3 1 , 2 0 2 1 , Kelly's Camera Shop had sales revenue of $ 1 8 5 ,
During the year ended December Kelly's Camera Shop had sales revenue of $ of which $ was
on credit. At the start of Accounts Receivable showed a $ debit balance and the Allowance for Doubtful
Accounts showed a $ credit balance. Collections of accounts receivable during amounted to $
Data during follow:
a On December a customer balance of $ from a prior year was determined to be uncollectible, so it was
written off.
b On December a decision was made to continue the accounting policy of basing estimated bad debt losses on
percent of credit sales for the year.
Required:
Give the required journal entries for the two events in December.
a Show how the amounts related to Bad Debt Expense would be reported on the income statement.
b Show how the amounts related to Accounts Receivable would be reported on the balance sheet.
On the basis of the data available, does the percent rate appear to be reasonable?
Complete this question by entering your answers in the tabs below.
Give the required journal entries for the two events in December. If no entry is required for a
transactionevent select No Journal Entry Required" in the first account field.
Journal entry worksheet
Record the writeoff of a certain customer account from
a prior year which is not collectible totaling $
Note: Enter debits before credits.
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