Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. drake consulting performs systems consulting and s

Drake Consulting performs systems consulting and sells accounting software. Drake reviewed the receivables list from...

70.2K

Verified Solution

Question

Accounting

Drake Consulting performs systems consulting and sells accounting software. Drake reviewed the receivables list from the January transactions. Drake uses the allowance method for receivables, estimating uncollectibles to be 3% of January sales revenue of $10,800. Drake identified on February 15 that a customer was not going to pay his receivable of $180.
Requirements
Journalize the January 31 entry to record and establish the allowance using the percent-of-sales method for January sales revenue.
Journalize the entry to record the write-off of the customer's bad debt.
Requirement 1. Journalize the January 31 entry to record and establish the allowance using the percent-of-sales method for Januarycredit sales. (Round to the nearest whole dollar. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
\table[[Date,Accounts and Explanation,Debit,Credit],[2017],[Jan.31,,,],[,,,],[,,,],[,7,,]]
image

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