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McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $2,800,000 in 2019. McKinney estimates 3.5% of
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $2,800,000 in 2019. McKinney estimates 3.5% of its sales will be uncollectible.
Required:
Prepare the journal entry to record bad debt expense for McKinney at the end of 2019. |
CHART OF ACCOUNTSMcKinney & Co.General Ledger
ASSETS | |
111 | Cash |
121 | Accounts Receivable |
122 | Allowance for Doubtful Accounts |
141 | Inventory |
152 | Prepaid Insurance |
181 | Equipment |
198 | Accumulated Depreciation |
LIABILITIES | |
211 | Accounts Payable |
231 | Salaries Payable |
250 | Unearned Revenue |
261 | Income Taxes Payable |
EQUITY | |
311 | Common Stock |
331 | Retained Earnings |
REVENUE | |
411 | Sales Revenue |
EXPENSES | |
500 | Cost of Goods Sold |
511 | Insurance Expense |
512 | Utilities Expense |
521 | Salaries Expense |
532 | Bad Debt Expense |
540 | Interest Expense |
541 | Depreciation Expense |
559 | Miscellaneous Expenses |
700 | Income Tax Expense |
Prepare the journal entry to record bad debt expense for McKinney on December 31.
General Journal Instructions
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GENERAL JOURNAL
DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
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