Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 The Marigold Corp. uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 5% of accounts receivable will eventually be

image text in transcribed
image text in transcribed
Question 9 The Marigold Corp. uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 5% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2021, and December 31, 2022, appear below: Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts 12/31/2021 12/31/2022 $401,000 $537,000 90,000 130,000 4,300 Record the following events in 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Aug. 10 Sept. 12 Oct 10 Determined that the account of Kurt West for $1,500 is uncollectible. Determined that the account of Jill Lynch for $2,000 is uncollectible. Received a check for $490 as payment on account from Kurt West, whose account had previously been written off as uncollectible. Date Account Titles and Explanation Debit Credit Aug. 10 Allowance for Doubtful Accounts Accounts Receivable Sept. 12 Allowance for Doubtful Accounts Accounts Receivable Oct. 10 Accounts Receivable Allowance for Doubtful Accounts (To reinstate Kurt West account previously written off) Sept. 12 Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable Allowance for Doubtful Accounts (To reinstate Kurt West account previously written off) Cash Oct. 10 Accounts Receivable (To record collection) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2022. automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts What is the balance of Allowance for Doubtful Accounts at December 31, 2022?! Balance of allowance for Doubtful Accounts at December 31, 2022 Clicifv

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

GAO Financial Audit Manual Volume 1 Updated April 2020

Authors: United States Government GAO

2020 Edition

B091PR8396, 979-8733135977

More Books

Students also viewed these Accounting questions

Question

How did the exposure treatment eventually help Andrea?

Answered: 1 week ago

Question

Which form of proof do you find least persuasive? Why?

Answered: 1 week ago