Geary,Inc.had the following sales during 2016:
Geary also had the following beginning and ending balances in the receivables accounts:

Geary,who uses the allowance method of accounting for uncollectible accounts,estimated that 3% of the credit sales will go uncollected.The credit card company charges Geary a 4% service charge.
Required: a)Prepare Geary's year-end adjusting journal entry for uncollectible accounts expense.
b)Prepare the entry to record the credit card sales.
c)What is Geary's cash flow from customers for the year?

Question

Geary,Inc.had the following sales during 2016:
Geary also had the following beginning and ending balances in the receivables accounts:
  
Geary,who uses the allowance method of accounting for uncollectible accounts,estimated that 3% of the credit sales will go uncollected.The credit card company charges Geary a 4% service charge.
Required: a)Prepare Geary's year-end adjusting journal entry for uncollectible accounts expense.
b)Prepare the entry to record the credit card sales.
c)What is Geary's cash flow from customers for the year?

Quizplus · Accepted Answer

The Answer of Geary,Inc.had the following sales during 2016:
Geary also had the following beginning and ending balances in the receivables accounts:
  
Geary,who uses the allowance method of accounting for uncollectible accounts,estimated that 3% of the credit sales will go uncollected.The credit card company charges Geary a 4% service charge.
Required: a)Prepare Geary's year-end adjusting journal entry for uncollectible accounts expense.
b)Prepare the entry to record the credit card sales.
c)What is Geary's cash flow from customers for the year?

Geary,Inc.had the Following Sales During 2016