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Wilson Corp. is a wholesaler of imported products. The company had the following opening balances at January 1, 2022: Accounts receivable $212,100 Allowance for doubtful
Wilson Corp. is a wholesaler of imported products. The company had the following opening balances at January 1, 2022: Accounts receivable $212,100 Allowance for doubtful accounts $-25,452 Net realizable value $186,648 During 2022, the company had the following summary transactions: a. Sales on account, $2,303,000; cost of goods sold, $1,036,000 b. Products returned by customers, $46,000; cost of inventory returned, $21,000 c. Cash collections on accounts receivable, $2,119,000 d. Write-offs of accounts receivable determined to be uncollectable, $31,815 e. A customer that was previously written off sent in a cheque for $2,900 f. You estimate that $38,000 of your accounts receivable will be uncollected in the upcoming year. Enter the letter that corresponds to your choice. (A B C D E F G H) The entry to record transaction (e) would include which of the following? (4 marks) A. increase Cash, increase Sales, decrease Cost of Goods Sold, decrease Accounts Receivable B. increase Cash, decrease Accounts Receivable, increase Accounts Receivable, increase Allowance for Doubtful Accounts C. increase Cash, decrease Accounts Receivable, increase Accounts Receivable, decrease Allowance for Doubtful Accounts D. increase Cash, decrease Accounts Receivable, decrease Bad Debt Expense, decrease Allowance for Doubtful Accounts E. increase Cash, decrease Bad Debt Expense, increase Bad Debt Expense, increase Allowance for Doubtful Accounts F. increase Cash, increase Sales, decrease Sales Returns and Allowances, decrease Accounts Receivable G. increase Cash, increase Accounts Receivable, decrease Bad Debt Expense, increase Allowance for Doubtful Accounts H. increase Cash, increase Sales, increase Sales Returns and Allowances, decrease Bad Debt Expense Enter the letter that corresponds to your choice. (A B C D E F G H) The entry to record transaction (f) would include which of the following? (2 marks) A. increase Bad Debt Expense, decrease Cash B. decrease Accounts Receivable, decrease Cash C. increase Bad Debt Expense, decrease Cost of Goods Sold D. decrease Accounts Receivable, increase Cost of Goods Sold E. increase Allowance for Doubtful Accounts, increase Bad Debt Expense F. decrease Accounts Receivable, decrease Bad Debt Expense G. decrease Allowance for Doubtful Accounts, decrease Bad Debt Expense H. decrease Accounts Receivable, increase Bad Debt Expense Enter the letter that corresponds to your choice. (A B C D E F G H)
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