On September 30,Waldon Co.has $540,250 of accounts receivable.Waldon uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $13,750.
1.Prepare journal entries to record the following selected October transactions.The company uses the perpetual inventory system.
a.Sold $305,000 of merchandise (that cost $178,500)to customers on credit.
b.Received $395,100 cash in payment of accounts receivable.
c.Wrote off $15,700 of uncollectible accounts receivable.
d.In adjusting the accounts on October 31,its fiscal year-end,the company estimated that 4.0% of accounts receivable will be uncollectible.
2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet.

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The Answer of On September 30,Waldon Co.has $540,250 of accounts receivable.Waldon uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $13,750.
1.Prepare journal entries to record the following selected October transactions.The company uses the perpetual inventory system.
a.Sold $305,000 of merchandise (that cost $178,500)to customers on credit.
b.Received $395,100 cash in payment of accounts receivable.
c.Wrote off $15,700 of uncollectible accounts receivable.
d.In adjusting the accounts on October 31,its fiscal year-end,the company estimated that 4.0% of accounts receivable will be uncollectible.
2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet.