Rogan Company's total sales on account for the year amounted to $327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required: Journalize the following selected entries: 2017 Dec. 31 Record adjusting entry. 2018 Mar. 2 Write off the account of A.M. Billson as uncollectible, $584. June. 6 Write off the account of W.H. Gilders as uncollectible, $492.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Rogan Company's total sales on account for the year amounted to $327,000. The company, which uses the allowance method, estimated
Required:
Journalize the following selected entries:
2017
Dec. 31 Record
2018
Mar. 2 Write off the account of A.M. Billson as uncollectible, $584.
June. 6 Write off the account of W.H. Gilders as uncollectible, $492.
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