Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial Accounting (129 Supex (Receivables) wip.docx Instructor-Turek Use your own paper Start each problem on a new sheet of paper C. Harris Digital Co, reported

image text in transcribed

Financial Accounting (129 Supex (Receivables) wip.docx Instructor-Turek Use your own paper Start each problem on a new sheet of paper C. Harris Digital Co, reported the following information on its balance sheet as of December 31, 2020. Accounts Receivable, gross $960,000 Less: Allowance for Doubtful Accounts 70,000 Accounts Receivable, net $890,000 Instructions: 1. For 2021, prepare the journal entries to record the following five transactions related to receivables. Assume that Harris Digital offers no cash discounts for early payments. Sales to customers on Account $3,200,000 b. Accepted returns and allowances from customers 50.000 Collections from customers on accounts receivable 2,800,000 d. Write-offs of accounts receivable deemed uncollectible 90,000 Recovery of bad debts previously written off (not included in c. above) 25,000 2. Set up T-accounts for A/R-Gross and AFDA, then insert the their January 1, 2021 balances, then post the entries to these two accounts, then determine year-end balance for A/R-Gross and the unadjusted balance in AFDA. 3. Prepare the journal entry to record bad debts expense for 2021, assuming that an aging of A/R indicates that uncollectible accounts are estimated to be $100,000(i.e., calculated amount) e

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Merchandising Math A Managerial Approach

Authors: Doris Kincade, Fay Gibson, Ginger Woodard

1st Edition

0130995886, 978-0130995889

More Books

Students also viewed these Accounting questions