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rumpt 1 Question 5 (6 points) Hector Enterprises accepts cash and debit cards for most...

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Accounting

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rumpt 1 Question 5 (6 points) Hector Enterprises accepts cash and debit cards for most sales transactions. But they do offer trade accounts receivable to select customers. The June month end is fast approaching, and they wish you to determine the proper entry to account for bad debts. Use the information below to determine the appropriate entry: Total Sales Cash sales Debit card sales Sales on Account: $ 980,590 $ 509,907 $ 156,894 ??? Bad Debt % on sales on account 3% Accounts Receivable ending balance $ Allowance for Doubtful Accounts opening balance $ Accounts written off this period $ 23,830 DR 4,297 CR 703 Aging Accounts Receivable Current 30-60 days Bad Debt % 45% 4% 31% 5% 18% 12% Ngns Bad De Current 30-60 days 60-90 days Over 90 days 4% 45% 31% 18% 6% 125 62% 100% A) Prepare the journal entries for the company to write-off accounts and record bad debt, assuming the Income Statement Approach. Show all calculations. B) What would be the net Accounts Receivable on the Balance Sheet after preparing your journal entry from A)?

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