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Sati [7]
3 years ago
7

The balance sheet of Indigo Company at December 31, 2019, includes the following. Notes receivable $54,600 Accounts receivable 1

91,700 Less: Allowance for doubtful accounts 26,300 $220,000 Transactions in 2020 include the following. 1. Accounts receivable of $147,000 were collected including accounts of $64,400 on which 2% sales discounts were allowed. 2. $5,620 was received in payment of an account which was written off the books as worthless in 2019. 3. Customer accounts of $26,500 were written off during the year. 4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $26,900. This estimate is based on an analysis of aged accounts receivable.
Business
1 answer:
Alchen [17]3 years ago
8 0

Answer:

Prepare the journal entries for above accounts

Explanation:

1. Cash   Dr.147,000

   Sales Discount Dr.1,314

   A/R                                   Cr.148,314    

2. Account  Receivable     Dr.5,620

    Disallowance for Bad debts        Cr.5,620

3.  Allowance for Doubtful Accounts  Dr.26,900

    Account Receivable                        Cr.26,900

4.  Bad Debts Expense    Dr.26,900

    Allowance for Doubtful Accounts   Cr.26,900

             

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Maurinko [17]

Answer:

$0 Gain or Loss

Explanation:

Given that,

Original cost of the equipment = $100,000

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Gain/Loss = Sale value - Book value of the equipment

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Therefore, the company should recognize a $0 Gain or Loss.

7 0
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A corporation's legal capital:
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3 0
3 years ago
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