Record sales and collections on account

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Question: On 31 May, Rosedale Floral Supply had a $155 000 debit balance in Accounts receivable and a $6 200 credit balance in Allowance for doubtful debts. During June, Roseville made:

a. sales on credit, $590 000 (ignore cost of sales)

b. collections on account, $627 000

c. write-offs of bad debts, $7 000.

Record sales and collections on account. Then record bad debt expense (3% of credit sales) and write-offs of customer accounts for June using the allowance method.

Show all June activity in Accounts receivable, Allowance for doubtful debts and Bad debt expense (post to these T-accounts.

Reference no: EM132736634

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