The following transactions involve Lusk Enterprises, which uses a percentage of credit sales method to estimate uncollectible accounts expense. Assume that the company records its uncollectibles estimate monthly.
April 1 Wrote off an uncollectible account of $20,000.
April 4 A customer whose $4,000 account was written off last year made restituition to Lusk at the rate of $0.30 on the dollar.
April 30 Lusk estimates that 1% of all credit sales will be uncollectible. Credit sales for April were $1,600,000
Required:
Journalize each of these transactions in Lusk's accounting records.

Question

The following transactions involve Lusk Enterprises, which uses a percentage of credit sales method to estimate uncollectible accounts expense. Assume that the company records its uncollectibles estimate monthly.
April 1	Wrote off an uncollectible account of $20,000.
April 4	A customer whose $4,000 account was written off last year made restituition to Lusk at the rate of $0.30 on the dollar.
April 30	Lusk estimates that 1% of all credit sales will be uncollectible. Credit sales for April were $1,600,000
Required:
Journalize each of these transactions in Lusk's accounting records.

Quizplus · Accepted Answer

The Answer of The following transactions involve Lusk Enterprises, which uses a percentage of credit sales method to estimate uncollectible accounts expense. Assume that the company records its uncollectibles estimate monthly.
April 1	Wrote off an uncollectible account of $20,000.
April 4	A customer whose $4,000 account was written off last year made restituition to Lusk at the rate of $0.30 on the dollar.
April 30	Lusk estimates that 1% of all credit sales will be uncollectible. Credit sales for April were $1,600,000
Required:
Journalize each of these transactions in Lusk's accounting records.

The Following Transactions Involve Lusk Enterprises, Which Uses a Percentage