Answer:
Journal Entry
A) Debit Bank 235000, Credit sales 235000
B) Debit Accounts receivable 11500 Credit sales 11500
C) Debit Accounts receivables 26500 credit sales 26500
D) Debit Sales allowance 500, Credit account receivable 500
E) Debit Accounts Receivables 24000, credit Sales 24000
F) Debit Bank 10780, Debit Sales discount 220,Credit Accounts receivable 11000
G) Debit Bank 98000, debit sales discount 2000, credit Accounts receivables 100000
H) Debit Bank 25970 Debit sales discount 530 Credit Accounts receivables 26500
I) Debit Accounts receivables 19000, Credit Sales 19000
J) Debit Sales allowance 3500 , Credit bank 3430, Credit sales discount 70
K) Debit Bank 6000, Credit Accounts receivables 6000
L) Debit Bad debts 3000, Credit Accounts receivables 3000
M) no entry, just estimate
ACCOUNTS RECEIVABLE balance at year end
opening balance 120000
B) SALES 11500
C) sales 26500
D) sales allowance (500)
E) sales 24000
F) Bank ( 10780)
discount ( 220)
G) Bank (98000)
discount ( 2000)
H) bank (25970)
discount (530)
I) SALES 19000
K) Bank (6000)
L) Bad debt (3000)
closing balance <u>54000</u>
allowance for bad debt (4733)
net closing balance <u>49267</u>
Allowance for doubtful debt
1 jan 8000
closing 4733
adjustment 3267 recorded in income statement as income
Explanation:
closing balance for provision of doubtful debts net sales * 1.5%
