Question

During 2015, The company had the following transactions related to recievables.

1.sales on account $3,700,000

2. Sales, Returns, and Allowances $ 50,000

3. Collections of Accounts Recievable 2,810,000

4. Write-offs of acciybts recievable deemed uncollectable 90,000

5. Recovery of bad debts previously written off as uncollecable 29,000

A) Prepare the Journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of AR.

B) Enter the January 1 2015 balances to the two accts (t-accounts), and determine the balances

C) prepare the journal entry to record bad debt exspense for 2015, assuming that an aging of accounts receicable indicated that expected bad debts are $115,000.

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