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The Accounts Receivable balance and Allowance for Bad Debts for at December 31 2023 was $10,800 and $2,000 (credit balance), respectively. During 2024 completed the
The Accounts Receivable balance and Allowance for Bad Debts for at December 31 2023 was $10,800 and $2,000 (credit balance), respectively. During 2024 completed the following transactions:
a. | Sales revenue on account, $287,200 (ignore Cost of Goods Sold). |
b. | Collections on account, $219,000. |
c. | Write-offs of uncollectibles, $6,000. |
d. | Bad debts expense of $5,100 was recorded. |
1. | Journalize Precious Gems Collection's transactions for2024 assumingPrecious Gems Collection uses the allowance method. |
2. | Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. |
3. | Show how accounts receivable would be reported on the balance sheet at December 31, 2024. |
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