Prepare journal entries to record the following transactions:
(1) On December 15, 2008, the company recorded $150,000 sales on credit.
(2) On December 31, 2008, the company estimated bad debt expenses of $15,000.
(3) On January 12, 2009, collect $100,000 worth of accounts receivable.
(4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing. It decided to write off this account.
(5) On July 15, Pendant Publishing called to say that they have had financial problems but can afford to pay $7,000 to settle their $10,000 debt in full. Vandolay Industries agreed to these terms, and reversed $7,000 of the prior write off. It received a $7,000 check from Pendant the next day.
Post the above entries to the following T accounts:
|
Accounts Receivable |
Allowance for Doubtful Accounts |