They can import and then industrialize.
Answer: Debit Bad debt expense $7,300; Credit Allowance for doubtful accounts $7,300.
Explanation: 5% of accounts receivable of $190,000 is $9,500. Remember the credit balance in Allowance for uncollectible accounts is $2,200 prior to any adjustment and this reports to the balance sheet. To reinstate this account to the required provision for uncollectible amount of $9,500, we need to adjust for the difference (that is, $9,500 minus $2,200 existing balance), which is $7,300. <u>Then, the entries above would be recorded. </u>
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Answer:
The journal entry for recording the original sale is shown below:
Explanation:
The journal entry for recording the original sale is as follows:
Accounts receivable A/c................................Dr $735
Sales Tax A/c...................................................Cr $35
Sales A/c............................................................Cr $700
As sales is made on credit so the accounts receivable account will be debited against the Sales account, which is credited. And there is sales tax charged on selling necklaces, which is credited to the sales tax account.
Computation of Sales Tax as:
Sales tax = Selling amount × Tax
where
Selling amount = Number of Necklaces × Price
= 20 × $35
= $700
So,
Sales tax = $700 × 5%
Sales tax = $35
The Middle East ( Syria , Iraq, Iran, Africa)
