Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. moonbeam inc. prepares its financial statements

1. Moonbeam Inc. prepares its financial statements on a monthly basis. Moonbeam made ks 95%...

90.2K

Verified Solution

Question

Accounting

image
1. Moonbeam Inc. prepares its financial statements on a monthly basis. Moonbeam made ks 95% of its sales for the 2021 year on account. Moonbeam made monthly adjusting entries equal to 1% of each month's credit sales to recognize bad debts expense. Additional information for the year ended December 31, 2021 follows: Total sales for the 2021 year Allowance for doubtful accounts, balance on January 1, 2021 Uncollectible accounts written off on June 30, 2021 Accounts receivable balance on December 31, 2021 Uncollectible account recovered on September 12, 2021 $ $ $ $ $ 5,229,111 52,291 54,906 1,464,151 2,745 Note that the uncollectible account recovered on September 12, 2021 was written off by management on June 30, 2021. 4% Management estimated that the following percentage of accounts receivable on December 31, 2021 would be uncollectible: Required: 1. Prepare a journal entry to record the write-off of uncollectible accounts on June 30, 2021. (1 mark) 2. Prepare journal entries for the recovery of the uncollectible account on September 12, 2021. (2 marks) 3. Prepare the adjusting entry on December 31, 2021 to bring the allowance for doubtful accounts to the proper balance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students