ABCO company has a balance in Allowance for Doubtful Accounts of $3,600
and Accounts Receivable of $56,870
Both ofvtue above have normal balances as of 7/1/2020
Credit sales for July were $155,000
Cash sales for July were $70,000
The following transactions were completed during July. The company used the percentages of Sales Method for Allowamces calculations
Make the journal entries for the following transactions and events.
July 02 Received payment of previously written off account of $ 385
Jul 09 Received letter that Jones, has gone bankrupt and owed us $550
July 11 Delsing company owed us $6450
we received the following amount from Delsing$2,875
the rest was written off. i.e. balance of $3,575
July 15 Sold $18,000 of meechandise ( that has cost $10,800) to costumers who used their VISA credit cards. VISA charges a 3%
July 31 The company estimates of credit sales that 2%
Jul 2 will not be collected ( make adjusting entry for allowance)
