Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. part v(60 points) on january 1 of the current year

PART V(60 POINTS) On January 1 of the current year, Neptune, Inc. had the following...

80.2K

Verified Solution

Question

Accounting

PART V(60 POINTS) On January 1 of the current year, Neptune, Inc. had the following accounts on its books:

Accounts Receivable

$240,000

(debit)

Allowance for Doubtful Accounts

8,000

(credit)

Required:

1. Prepare general journal entries for the following transactions that occurred during the year: a. During this year, credit sales were $1,200,000. b. Collections on account were $1,160,000. c. Wrote off N. Purcells account, $6,800.

d. Wrote off J. Steins account, $2,400.

e. Stein, who is in bankruptcy, paid $800 in final settlement of the account written off in transaction (d). This amount is not included in the $1,160,000 collections.

f. On December 31, estimated the years bad debts expense at 1% of credit sales.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the year-end balance sheet. Suggestion: Post the above transactions and January 1 balances to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts.

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