60.1K

Verified Solution

Link Copied!

2 - Percent of Sales and Accounts Receivable Method to estimate bad debt expense Opportunity Ltd. had the following opening account balances on January 1, 2020: Accounts receivable Allowance for doubtful accounts Transactions during the year were: Sales (all on credit) $1,225,000 debit balance Accounts receivable written off as uncollectible 29,000 credit balance $ 2,837,100 3,250,000 35,000 a. Prepare the journal entry for the accounts receivable written off during the year. Collections on accounts General Journal Date Post. 2020 Account Titles and Explanations Ref. Debit Credit Prepare the journal entry to estimate the bad debt expense for the year. General Journal Date 2020 Account Titles and Explanations Update T-Accounts Accounts Receivable Calculate Net Receivables Post. Ref. Debit Credit Allowance for Doubtful Accounts Balance Sheet (partial) c. Assume that bad debts are estimated at 0.5% of credit sales for 2020. Prepare the journal entry to estimate the bad debt expense for the year. General Journal Date 2020 Post. Account Titles and Explanations Ref. Debit Credit Update the T-Accounts Accounts Receivable Allowance for Doubtful Accounts Update the T-Accounts Accounts Receivable Allowance for Doubtful Accounts Calculate Net Receivables Balance Sheet (partial)

Answer & Explanation Solved by verified expert

See Answer