Sep 30 nsf check 100 page 7 processing fee 25 cash

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Sep 30 NSF check…………………………………. 100 Page 7
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Processing Fee……………………………… 25 Cash………………………………... 125 Sep 30 Cancelled Check………………………….. 275 Cash………………………………. 275 Sep 30 Debit Memorandum……………………….. 15 Cash…………………………… 15 Problem #3 Use the following to answer the following problem On December 31, of the current year, a company's unadjusted trial balance revealed the following: Accounts receivable of $185,600; Sales Revenue of $1,280,000; (75% were on credit), and Allowance for Doubtful Accounts of $1,600 (credit balance). Problem #3 ( 25 points ) Prepare the adjusting journal entry to record the estimate for bad debts assuming: 1. 6% of the accounts receivable balance is assumed to be uncollectible. 2. Bad debts expense is estimated to be 1.5% of credit sales. Dec 31 Bad Debts Expense…………………………………………….. 17,184 Allowance for doubtful accounts………………………. 17,184
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  • Summer '10
  • TracyEdmond
  • Cash Disbursements Journal, Purchases Journal

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