ACCT 280-Complete journal entries for the following transactions
Question # 00543245
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Updated on: 06/09/2017 07:52 AM Due on: 06/09/2017
1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance.
2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay
On July 15, surprisingly one of the customers who owed $400 and was written off on June 30, paid their bill
4. On July 31, our fiscal year ends, the allowance for doubtful accounts has a balance of $1,780
The company uses an aging method to calculate the desired allowance balance.
An accounts receivable aging shows the following:
| 30 days or less = $68,500 |
| 31 -60 days = $10,400 |
| 61-90 days = $4,300 |
| Over 90 days = $1,200 |
| The company wants an ending reserve equal to: |
| 30 days or less = 1% |
| 31-60 days = 3% |
| 61-90 days = 5% |
| over 90 days = 15% |
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Solution: ACCT 280-Complete journal entries for the following transactions