Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends...
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Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year.
A. Write the journal entry at the end of the year that would record these credit sales:
B. Assume that Healthy Lawn Maintenance estimates that it will not collect 2% of total credit sales.
Write the correct journal entry that records these expected write-offs.
C. Healthy Lawn Maintenance's customers remitted a total of $1,900,000 in cash during 2013.
Write the appropriate journal entry:
D. The 2013 year-end balance in Accounts Receivable (Gross) for Healthy Lawn Maintenance is $1,085,000. An aging of these accounts receivable shows that the estimated uncollectible amount is $24,200. Before aging the accounts, the Allowance for Doubtful Accounts has a debit balance of $15,000 from writing off actual accounts during 2013.
Write the journal entry that represents the appropriate amount of Bad Debt Expense during the year 2013.
Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year.
A. Write the journal entry at the end of the year that would record these credit sales:
B. Assume that Healthy Lawn Maintenance estimates that it will not collect 2% of total credit sales.
Write the correct journal entry that records these expected write-offs.
C. Healthy Lawn Maintenance's customers remitted a total of $1,900,000 in cash during 2013.
Write the appropriate journal entry:
D. The 2013 year-end balance in Accounts Receivable (Gross) for Healthy Lawn Maintenance is $1,085,000. An aging of these accounts receivable shows that the estimated uncollectible amount is $24,200. Before aging the accounts, the Allowance for Doubtful Accounts has a debit balance of $15,000 from writing off actual accounts during 2013.
Write the journal entry that represents the appropriate amount of Bad Debt Expense during the year 2013.
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