The ledger of Costello Company at the end of the current year shows Accounts Receivable $130,000, Sales Revenue $849,000, and Sales Returns and Allowances $27,000.
There is a credit balance in Allowance for doubtful accounts of $6,500. Costello uses the % of sales method for allowance for bad debts.
Costello will be using 2% of net sales for their adjustment this year.
Record the entry for the allowance at year end
Account	Debit	Credit
In February, a receivable in the amount of $2,500 is deemed uncollectible and needs to be written off. Below record the journal entry
Account	Debit	Credit
Much to everyone's surprise, you receive a check in May paying for the written off invoice. Below record the journal entry							hint: this is 2 entries
Account	Debit	Credit
The ledger of Costello Company at the end of the current year shows Accounts Receivable $130,000, Sales Revenue $849,000, and Sales Returns and Allowances $27,000.
There is a credit balance in Allowance for doubtful accounts of $6,500. Costello uses the % of sales method for allowance for bad debts.
Costello will be using 2% of net sales for their adjustment this year.
Record the entry for the allowance at year end
Account	Debit	Credit
In February, a receivable in the amount of $2,500 is deemed uncollectible and needs to be written off. Below record the journal entry
Account	Debit	Credit
Much to everyone's surprise, you receive a check in May paying for the written off invoice. Below record the journal entry							hint: this is 2 entries
Account	Debit	Credit