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Joe Rollins the manager of Office Equipment reports the debit balance in accounts receivable is $450,000 and the credit balance in the allowance for doubtful

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Joe Rollins the manager of Office Equipment reports the debit balance in accounts receivable is $450,000 and the credit balance in the allowance for doubtful accounts is $57,000. During 2020 the following occurred. Office Equipment uses a perpetual inventory system. Year end is May 31. January 30 Sales for January totaled $125,000 and cost of sales is $65,000. All sales are credit sales. February 8 Aging of accounts receivable indicated the balance for allowance for doubtful accounts should be $80,000. March 1 A few customers indicate they will not be able to pay. The total amount owed by these customers is $45,000. Management authorizes the write-off of these accounts. March 15 Crafts Plus, one of the customers whose account was wrote off on March 1 paid the amount owed of $5,000. May 1 Accepted a $15,000 note from Car Shield in settlement of an accounts receivable. The note bears 8% interest and both the principal and interest and due in three months on July 31. May 31 Record interest on the note at year end July 31 Car shield paid the amount owed on the note. Required: Record the above transactions. Joe Rollins the manager of Office Equipment reports the debit balance in accounts receivable is $450,000 and the credit balance in the allowance for doubtful accounts is $57,000. During 2020 the following occurred. Office Equipment uses a perpetual inventory system. Year end May 31. Sales for January totaled $125,000 and cost of sales is $65,000. All sales are credit sales. Date Account Title and Explanation Debit Credit Aging of accounts receivable indicated the balance for allowance for doubtful accounts should be $80,000. Date Account Title and Explanation Debit Credit A few customers indicate they will not be able to pay. The total amount owed by these customers is $45,000. Management authorizes the write-off of these accounts. Date Account Title and Explanation Debit Credit Crafts Plus, one of the customers whose account was wrote off on March 1, paid the amount owed of $5,000. Date Account Title and Explanation Debit Credit May1. Accepted a $15,000 note from Car Shield in settlement of an accounts receivable. The note bears 8% interest and both the principal and interest and due in three months on July 31. Date Account Title and Explanation Debit Credit 1 May 31. Record interest on note at year end. Date Account Title and Explanation Debit Credit May 31. Record interest on note at year end. Date Account Title and Explanation Debit Credit July 31. Car shield paid the amount owed on the note. Date Account Title and Explanation Debit Credit

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