90.2K

Verified Solution

Link Copied!

Journal entries

- EXHIBIT III - PHOTOGRAPHY SALES AND COLLECTIONS- CORPORATE CUSTOMERS August 1, 2016 September 5, 2016 December 12, 2016 February 10, 2017 James received a cheque in the mail from a business whose account had been written off in January 2015. The cheque was for 30% of the $4,000 that had been written off. The London High School called to complain that some of the pictures James had taken for a school function were not the right type. The school had already paid its bill, so James sent them a $200 refund. Stanley Company declared bankruptcy, and James decided to write off its outstanding balance of $1,700. The Business Company, a corporate customer, called to ask that their $2,000 outstanding ac- count be converted to a note. James agreed to convert the account receivable to a 12%, three- month note receivable. The note was paid in full on May 9, 2017. Sterling Corporation called to ask James if he would be available to take pictures at a family fun day they were planning for August 2017. James agreed to take the pictures, and told Ster- ling the cost would be $1,500. Sterling gave James a deposit of $500, and will pay the balance when the services are performed. This $500 was not included in the gross sales figure for the year. At the end of the fiscal year, the balance in Accounts Receivable was $3,150. James believes that 4% of outstanding accounts receivable at the end of the year will not be collectible. March 9, 2017 a June 30, 2017

Answer & Explanation Solved by verified expert

See Answer