Show Attempt History

Current Attempt in Progress

On December $31,2019,$ Mills Manufacturing Ltd$.$ had a $$206,000$ balance in its Accounts Receivable and a $$9,100$ balance in its Allowance for Doubtful Accounts. During $2020,$ the company made total sales of $$991,000,$ of which $$208,000$ were cash sales. By the end of the year, Mills had received payments of $$710,000$ from its customers on account. The company also wrote off as uncollectible $$13,700$ of its receivables when it learned that these customers had declared bankruptcy. The company was subsequently able to recover $$5,400$ from one of these customers. $($Note that this amount is not included in the cash collections noted above.$)$ Management estimates that bad debts expense will be $3\%$ of its credit sales.

$($a$)$

Your Answer

Correct Answer

Your answer is partially correct.

Prepare the journal entries to record all the $2020$ transactions, including the adjustment for bad debts expense at year end. $($Credit account titles are automatically indented when amount is entered, Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit