Question
Foxmore Company Inc had the following accounts receivable transactions occur during 2016. The company had a balance of $2,840 in allowance for the bad debt
Foxmore Company Inc had the following accounts receivable transactions occur during 2016. The company had a balance of $2,840 in allowance for the bad debt on January 1, 2016.
Required: 1. Record these transactions in proper journal entry format.
2. Complete the Allowance for a bad debt ledger and determine the ending balance.
March 2: A letter was received that Ceramic Enterprises LTD had declared bankruptcy and would not be paying the $2,718 owed to Foxmore.
March 14: In February, the company had written off the Mason Inc accounts receivable. Today, they received a cashiers check in the amount of $270.
July 3: It has been determined that $965.00 in the Major Co account has become uncollectible.
September 9: Ceramic Enterprises LTD has sent a check for $782 in partial payment of their account which Foxmore had written off in March.
December 31: Net sales for the year were $462,600.00. It has been determined that 2% of net sales will not be collected.
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