swiss supplies showed the following selected adjusted balances at its december 31,2019 year end

accounts receviable

dec31/19 balance 490000

allowance for doubtful account

16400 dec 31/19balance

during 2020 the following selected transactions occured.

a) sales totaled 2800000 of which 25%was cash sales (cost of sales 1804000)

b)sales return were 108000 half regarding credit sales. the returned merchandise was scrapped

c)account for 24000 was recovered .

d)several accounts were written off 26000

e)collections from credit customers totalled 1790000(excluding the recovery in (C) above.

PART (A)

required

1. journalize transactions (a) through (e). you may find it to useful to post your entries to T-accounts for accounts receivable and allowance for doubtful accounts.

a1. record the sales.

a2. record the cost of sales.

a3. record the return of defective merchandise to be scrapped.

a4. record the several entry of write off due to recovery.

a5. record the recovery .

a6. record the write off of uncollectible accounts.

a7. record the collections of the credit coustomers.

PART -B

Required

prepare the dec31, 2020 , adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1%of the net credit sales.

1)record the estimate for the uncollectible accounts.

3)show how account recievable will appear on the dec 31,2020, balance sheet.

assests:

current assests:

4) what will be the bad debt be on the same income statement for the year ended dec31 , 2020?

5) prepare the dec 31 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3%of outstanding recievable.

record the estimate for the uncollectible accounts.

6) show how account recievable will appear on 31 dec 2020, balance sheet.

assests:

current assests:

7)what will be the bad debt expense be on the income statement for the year ended 31 dec2020.