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Zawad Corporation had the following balances on 30th April, 2011: Accounts Receivables . . ....

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Accounting

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Zawad Corporation had the following balances on 30th April, 2011: Accounts Receivables . . . $325,000 DR Allowance for doubtful debts ... $12,800 CR The following transactions took place during the month of May: May... Transaction details 2... Received cash in full settlement of accounts receivables. 3 ... Sold merchandize on account, list price $125,000, trade discount 8% [terms of trade: 2/15, n/30]. 7 ... Sold merchandize on account for $475,000 [terms of trade: 2/15, n/30] 15... Received cash in full settlement of 3rd May transaction. 30 ... Zawad Corp decided to write off $2,525 of accounts receivables as bad debts. Additional information. Zodarneration can 30... Zawad Corp decided to write off $2,525 of accounts receivables as bad debts. Additional information: Zawad Corporation uses the net method of recording discounts and estimates bad debts at 5% of accounts receivables (per month). Instruction: On the Answer Template Journalize the transactions of the month of May, including the month-end adjusting entry to record allowances for bad debts. State the value of bad debts expense in the box below [10 marks]

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