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Unformatted text preview: Calistoga Produce estimates bad debt expense at % of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650 respectively, at December 31, 2005. During 2006, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in bad accounts was written off. Calistoga's 2006 bad debt expense is: Calistoga's accounts receivable at December 31, 2006, are: Calistoga's adjusted allowance for uncollectible accounts at December 31, 2006, is: On May 12, 2006, Falwell Computing sold five computers to Computing Plus for $10,000, subject to terms 3/10, n30. Falwell uses the net method of accounting for sales discounts. Required: (a.) Prepare the journal entry to record the sale. (b.) Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on May 20, 2006. (c.) Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 5, 2006. received on June 5, 2006....
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- Spring '08