Journal entry to recognize the event


Question: ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________.

  • $1,200
  • $3,000
  • $3,600
  • $7,200

Question12. A $6,000, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is ________.

  • debit Cash, $6,060; credit Notes Receivable, $6,060
  • debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Receivable, $60
  • debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060
  • debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Journal entry to recognize the event
Reference No:- TGS01931691

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)