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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 36
Applying the allowance method (percentage of sales) to account for uncollectibles
The Accounts receivable balance for Winter Retreats at December 31, 2011, was $18,000. During 2012, Winter completed the following transactions:
a. Sales revenue on account, $447,000 (ignore cost of goods sold).
b. Collections on account, $424,000.
c. Write-offs of uncollectibles, $5,900.
d. Uncollectible account expense, 2% of credit sales.
Requirement
1. Journalize Winter's 2012 transactions.
The Accounts receivable balance for Winter Retreats at December 31, 2011, was $18,000. During 2012, Winter completed the following transactions:
a. Sales revenue on account, $447,000 (ignore cost of goods sold).
b. Collections on account, $424,000.
c. Write-offs of uncollectibles, $5,900.
d. Uncollectible account expense, 2% of credit sales.
Requirement
1. Journalize Winter's 2012 transactions.
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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