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Worksheet 8-1 - $10,000 in accounts receivables from...

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HANDOUT 8 – 1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare journal entries to record the following transactions: (1) On December 15, 2008, the company recorded $150,000 sales on credit. Dec. 15 Sales Revenue 150000 Accounts Recieveble 150000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity +150000 +150,000 (2) On December 31, 2008, the company estimated bad debt expenses of $15,000. Dec. 31 Bad Debt Expense 15000 Allowance for doubtful accounts 15000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity +15000 -15000 (3) On January 12, 2009, collect $100,000 worth of accounts receivable. Jan. 12 Cash 100000 2009 A/R 100000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity (4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect
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Unformatted text preview: $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account. Jun. 15 Allowance 10000 A/R 10000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity HANDOUT 8 – 1, CONTINUED (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. Jul. 16 A/r 7000 Allowance 7000 Jul. 16 Cash 7000 A/R 7000 Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity Post the above entries to the following T-accounts : + Accounts Receivable (A) –- Allowance for Doubtful Accounts (xA) +...
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