Accounts receivable collections and bad debts

Assignment Help Financial Accounting

Reference no: EM13790083

Beginning operations in Jan 1, 2012 A corporation completed number of transactions during 2012 and 2013 that involved credit sales, accounts receivable collections and bad debts. Transactions summarized below:

2012:

a. Sold Merchandise on credit for $277,400 terms n/30

b. Received cash of $390,600 in payments of outstanding Accounts Receivable

c. Wrote off uncollectible accounts receivable in amount of $800.

d. In adjusting the accounts on December 31, concluded that 1.5% of outstanding A/R would become uncollectible.

2013:

e. Sold merchandise on credit for $375,000 terms n/30

f. Received cash of $390,600 in payments of outstanding A/R

g. wrote off uncollectible accounts receivable in amount of $1,200

h. in adjusting the accounts on Dec 31 concluded that 1.5% of outstanding A/R would be uncollectible.

- Prepare General Journal entries to record 2012 and 2013 transactions, and adjusting entries to record bad debt expense at end of each year.

Reference no: EM13790083

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