# Laminate Express extended credit to customer Amal Sunderland in the amount of \$244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is \$88,440. On April 5, Laminate Express determined that Amal Sunderland’s account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

Chapter
Section
FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 9, Problem 4EB
Textbook Problem
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## Laminate Express extended credit to customer Amal Sunderland in the amount of \$244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is \$88,440. On April 5, Laminate Express determined that Amal Sunderland’s account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.

To determine

Concept introduction:

Journal Entry: In journal entry, a company records all the business transactions which are in monetary form. Company records the transaction on debit and credit side in a journal entry. The total of debit and credit side is always equal.

To prepare:

Journal Entry in the books of company.

### Explanation of Solution

 Date Particulars Debit (\$) Credit (\$) Jan 4 Accounts receivable A/c Sales A/c (Being goods sold on credit.) 244650 244650 Jan 4 Cost of goods sold A/c Inventory A/c (Being inventory is transferred to the cost of goods sold account...

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