Question
The compeny uses the perce sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts
The compeny uses the perce sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following transactions during the first quarter of 2020: 1. During January, GWC provided services for $9,800 on account. 2. On January 31, GWC estimated bad debt using 1% of sales. 3. On February 5, GWC wrote off a customer balance of $900 that was deemed uncollectible. 4. On March 1, GWC loaned $3,600 to an employee who signed a 9% note, due in four months. 5. On March 31, GWC adjusted for uncollectible accounts, based on the aging analysis presented below, which includes the preceding transactions (and others not listed). Prior to the adjustment, the Allowance for Doubtful Accounts had an unadjusted credit balance of $1,000. 6. On March 31, GWC accrued interest earned on the note Accounts Receivable Amount Estimated Uncollectible (%) Required: Total 0-30 Days 31-60 Days 61-90 Days Over 90 Days $11,800 $4,500 12,900 $1,400 $3,000 6% 18% 30% 75% Prepare journal entries for each of items 1 to 8. Record your answers in the space provided below. NOTE: Use full proper account names, as shown in class and in the textbook: do NOT use abbreviations. Enter all amounts in whole dollars only, with NO special characters (dollar sign, comma, etc.) of any kind. For example, for $1,000, write 1000 only, not 1000.00, not $1,000, etc. Item #Account Name(s) Debit Credit
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