Question
The ledger of Pina Colada Corp. at the end of the current year shows Accounts Receivable $108,000; Sales Revenue $832,000; and Sales Returns and Allowances
The ledger of Pina Colada Corp. at the end of the current year shows Accounts Receivable $108,000; Sales Revenue $832,000; and Sales Returns and Allowances $18,100. Prepare journal entries for each separate scenario below.
(a) | If Pina Colada Corp. uses the direct write-off method to account for uncollectible accounts, journalize the entry at December 31, assuming Pina Colada Corp. determines that L. Doles $1,000 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Determine the ending balance Accounts Receivable and Allowance for Doubtful Accounts
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(b) | If Allowance for Doubtful Accounts has a credit balance of $2,000 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectible accounts are estimated to be 11% of accounts receivable. | |||||||||||||||||||||||||||||
(c) | If Allowance for Doubtful Accounts has a debit balance of $199 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectible accounts are estimated to be 8% of accounts receivable. |
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