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Viola Ltd. has provided you with the following partial trial balance for their December 2020 year-end. Accounts receivable $ 34,550 Allowance for doubtful accounts 4,760
Viola Ltd. has provided you with the following partial trial balance for their December 2020 year-end. Accounts receivable $ 34,550 Allowance for doubtful accounts 4,760 Sales discount Required: Prepare the annual adjusting journal entries for Viola as follows. Please round to the nearest whole number. During December, Viola provided services valued at $50,000 on account, with terms 4/30, net 60. After 15 days, the customer paid Viola and the following entry was recorded: Dr. Cash for $48,000 and Cr. Accounts Receivable for $48,000. Viola has not performed any other entries pertaining to this sale. Account Credit Debit Supporting Work Viola uses the allowance method for recording bad debts. Outstanding accounts receivable of $5,400 from Milstein's Instruments are uncollectible. Account Debit Credit Supporting Work Viola has determined the allowance for doubtful accounts as at December 31, 2020 should be 3.50% of the balance in accounts receivable after adjusting journal entries have been made. Account Debit Credit Purchases Allowance for doubtful accounts Inventory - raw materials Inventory - merchandise Equipment Accumulated amortization - equipment Vehicles Accumulated amortization - vehicles Accrued liabilities Accounts payable Income taxes payable (recoverable) Shareholder loan payable (receivable) GST payable (receivable) ) DE Payroll deductions payable Bank loan Common shares Retained earnings Dividends T Sales revenue Sales discounts O TOT L 79% 35C ^ Go o
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