View the step-by-step solution to:

Accounting for ReceivablesJournal Entries The following transactions affecting the accounts receivable of Wonderland Corporation took place during...

Accounting for Receivables—Journal Entries
The following transactions affecting the accounts receivable of Wonderland Corporation
took place during the year ended January 31, 2013:
Sales (cash and credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $691,050
Cash received from credit customers, all of whom took advantage of the
discount feature of the corporation’s credit terms 4/10, n/30 . . . . . . . . . . . . . . . . . . . . . . . . . . 303,800
Cash received from cash customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,270
Accounts receivable written off as worthless. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,250
Credit memoranda issued to credit customers for sales returns and allowances. . . . . . . . . . . . . . . 83,800
Cash refunds given to cash customers for sales returns and allowances . . . . . . . . . . . . . . . . . . . . 13,318
Recoveries on accounts receivable written off as uncollectible in prior periods
(not included in cash amount stated above) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,290
The following two balances were taken from the January 31, 2012, balance sheet:
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $95,842
Allowance for Bad Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,740 (credit)
The corporation provides for its net uncollectible account losses by crediting
Allowance for Bad Debts for 1.5% of net credit sales for the fiscal period.
Instructions:
1. Prepare the journal entries to record the transactions for the year ended January
31, 2013.
2. Prepare the adjusting journal entry for estimated uncollectible accounts on
January 31, 2013.

07-46 Name: Melody Chaffee

To enter the journal entries, select the appropriate account titles from the drop-down lists
provided in the blue-shaded cells in columns C and D, and enter the appropriate amounts in
the blue-shaded cells in columns G and I. Round your answers to nearest whole number.

1. GENERAL JOURNAL
Account Title Debit Credit

Cash 310,270
Accounts Receivable 380,780
Sales 691,050

Cash 303,800
Sales Discounts
Accounts Receivable

Allowance for Bad Debts 5,250
Accounts Receivable 5,250

Sales Returns and Allowances 83,800
Accounts Receivable 83,800

Sales Returns and Allowances 13,318
Cash 13,318

Accounts Receivable
Allowance for Bad Debts

Cash 8,290
Accounts Receivable 8,290


2. GENERAL JOURNAL
Account Title Debit Credit
Adjusting Entry
Bad Debt Expense
Allowance for Bad Debts

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question