The trial balance of Pharoah Paints at December 31, 2020, includes the following: Debits Credits Accounts Receivable $99,000 Allowance for Doubtful Accounts 880 Sales $99,880 Present the journal entries specified below. Each item should be considered independently. A. If Pharoah Paints uses the aging method and estimates that $2,816 of receivables will be uncollectible, prepare the adjusting entry. B. If Pharoah Paints estimates uncollectibles at 2.2% of accounts receivable and the allowance account had a $880 credit balance instead of a $880 debit balance, prepare the appropriate adjusting entry. C. Assume that on February 3, 2021, the specific account of George Samson with a balance of $400 is deemed uncollectible. Record the write-off. D. Assume that on May 4, 2021, George Samson pays the above balance in full. Record the appropriate entries.
The
Debits Credits
Accounts Receivable $99,000
Allowance for Doubtful Accounts 880
Sales $99,880
Present the
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A. |
If Pharoah Paints uses the aging method and estimates that $2,816 of receivables will be uncollectible, prepare the |
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B. |
If Pharoah Paints estimates uncollectibles at 2.2% of accounts receivable and the allowance account had a $880 credit balance instead of a $880 debit balance, prepare the appropriate adjusting entry. |
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C. |
Assume that on February 3, 2021, the specific account of George Samson with a balance of $400 is deemed uncollectible. Record the write-off. |
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D. |
Assume that on May 4, 2021, George Samson pays the above balance in full. Record the appropriate entries. |
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