Question
Urgent help on accounting homework please? In its first year of operations, 20X4, Trendy Fashion had credit sales of $350,000 to 120 different customers. Of
Urgent help on accounting homework please?
In its first year of operations, 20X4, Trendy Fashion had credit sales of $350,000 to 120 different customers. Of this amount, Mr. Fox purchased $400 and Ms. Hound purchased $180 on account. During the year, cash collections of $321,000 were made, of which Mr. Fox paid $360 and Ms. Hound paid $60. At the end of 20X4, bad debts expense was estimated to be 5% of ending accounts receivable. On February 23, 20X5, the balance in Ms. Hound's account was written off as uncollectible.
Prepare the appropriate journal entry on the books of Trendy Fashion for:
a. the $350,000 in credit sales
b. the collection of $321,000 from credit customers
c. the estimation of bad debts expense
d. the write-off of Ms. Hound's account
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