Respuesta :
Answer and Explanation:
The Journal entry is shown below:-
1. Accounts receivable Dr, $1,351,700
To Sales revenue $1,351,700
(Being merchandise on credit is recorded)
Cost of goods sold Dr, $981,800
To Merchandise inventory $981,800
(Being cost of goods sold is recorded)
2. Allowance for Uncollectible accounts Dr, $21,500
To Accounts receivable $21,500
(Being Uncollectible accounts is receivable is recorded)
3. Cash account Dr, $670,400
To Accounts receivable $670,400
(Being cash is recorded)
4. Bad debts expenses Dr, $41,294
To Allowance for uncollectible accounts $41,294
(Being bad debt expenses is recorded)
Working Note
Accounts receivable ($1,351,700 - $21,500 - $670,400) $659,800
Required balance 3% $19,794
Add: Debit balance $21,500
Bad debt expenses $41,294
5. Accounts receivable Dr, $1,586,800
To Sales revenue $1,586,800
(Being merchandise on credit is recorded)
Cost of goods sold Dr, $1,326,300
To Merchandise inventory $1,326,300
(Being cost of goods sold is recorded)
6. Allowance for Uncollectible accounts Dr, $25,300
To Accounts receivable $25,300
(Being uncollectible accounts receivable is recorded)
7. Cash account Dr,$1,182,900
To Accounts receivable $1,182,900
(Being cash is recorded)
8. Bad debts expenses Dr, $36,658
To Allowance for uncollectible accounts $36,658
(Being bad debt expenses is recorded)
Working Note
Accounts receivable-Gross $659,800
Add: Sales $1,586,800
Less: Collections $1,182,900
Less: Amount write off $25,300
Balance $1,038,400
Required balance 3% $31,152
Allowance Balance $19,794
Less: Amount written off $25,300
Debit balance $5,506
Add: Required balance $31,152
Bad debts expenses $36,658
