Reference no: EM132617069
Question - The December 31, 2007 balance sheet of Quayle Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful Accounts of $33,000.
During 2008, the following transactions occurred:
Sales on account $1,400,000;
Sales returns and allowances, $50,000;
Collections from customers, $1,150,000;
Accounts written off $35,000;
Previously written off accounts of $5,000 were collected.
Required -
(a) Journalize the 2008 transactions.
(b) If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 4% of accounts receivable, what is the adjusting entry at December 31, 2008?