The Accounts Receivable balance for Lantana Company at December 31, 2023, was $27,000. During 2024, Lantana earned revenue of $460,000 on account and collected $326,000 on account. Lantana wrote off $5,500 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 4% of accounts receivable. Read the requirements. Requirement 1. Assume Lantana had an unadjusted $2,100 credit balance in Allowance for Bad Debts at December 31, 2024. Journalize Lantana's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Date Dec. 31 Debit Credit
The Accounts Receivable balance for Lantana Company at December 31, 2023, was $27,000. During 2024, Lantana earned revenue of $460,000 on account and collected $326,000 on account. Lantana wrote off $5,500 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 4% of accounts receivable. Read the requirements. Requirement 1. Assume Lantana had an unadjusted $2,100 credit balance in Allowance for Bad Debts at December 31, 2024. Journalize Lantana's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Date Dec. 31 Debit Credit
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 1CP: Martel Co. has 320,000 in Accounts Receivable on December 31, 20-1, the end of its first year of...
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