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Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts

receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for doubtful account had a credit balance of $5,000. Journalize the remaining journal entries for the 2017 year.


Dec. 2 Sold tents for $5,000 on account with a cost of $2,500.

      20 Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,200 and Grouse Co. with an accounts receivable balance of $2,500 were uncollectible and needed to be written off.

      23 Unexpectedly received payment from Grouse Co. for $2,500.

      31 Estimated that 10% of accounts receivable recorded to date would be uncollectible.


Required:

1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)


2. Post the T-account for accounts receivable, bad debt expense, and allowance for doubtful accounts. Determine the ending balance for each account.



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