During the year ended December 31, 2017, Kelly's Camera Equipment had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2017, Accounts Receivable showed a $10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts receivable during 2017 amounted to $68,000 Use the following data for 2017 to answer the questions: a. On December 10, 2017, a customer balance of $1,500 from a prior year was determined to be uncollectable, so it was written off b. On December 31, 2017, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Required: 1. Prepare the required journal entries for the two events in December 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required: 1. Prepare the required journal entries for the two events in December 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 On December 10, 2017, a customer balance of $1,500 from a prior year was determined to be uncollectable, so it was written off. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 10, 2017 Clear entry Record entry View general journal Journal entry worksheet 1 On December 31, 2017, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Note: Enter debits before credits. Credit Date General Journal Debit Dec. 31, 2017 Record entry View general journal Clear entry N 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2017. (Amounts to be deducted should be indicated by a minus sign.) Partial Income statement for 2017 Operating expenses: Partial Balance sheet for 2017 Current assets: 3-a. On the basis of the data available, does the 2 percent rate appear to be reasonable? Yes No During the year ended December 31, 2017, Kelly's Camera Equipment had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2017, Accounts Receivable showed a $10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts receivable during 2017 amounted to $68,000 Use the following data for 2017 to answer the questions: a. On December 10, 2017, a customer balance of $1,500 from a prior year was determined to be uncollectable, so it was written off b. On December 31, 2017, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Required: 1. Prepare the required journal entries for the two events in December 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required: 1. Prepare the required journal entries for the two events in December 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 On December 10, 2017, a customer balance of $1,500 from a prior year was determined to be uncollectable, so it was written off. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 10, 2017 Clear entry Record entry View general journal Journal entry worksheet 1 On December 31, 2017, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Note: Enter debits before credits. Credit Date General Journal Debit Dec. 31, 2017 Record entry View general journal Clear entry N 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2017. (Amounts to be deducted should be indicated by a minus sign.) Partial Income statement for 2017 Operating expenses: Partial Balance sheet for 2017 Current assets: 3-a. On the basis of the data available, does the 2 percent rate appear to be reasonable? Yes No
