Question - During the 2015-16 financial year CE Electronics entered into the following transactions:
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Sales on account
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$1,400,00
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Collections of credit sales
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1,225,000
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Write off accounts deemed uncollectible
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20,000
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Received payments on accounts previously written off
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7,500
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On its 30 June 2016 statement of ?nancial position, CE reported gross accounts receivable of $707 000 and an allowance account of $43 000.
Required - Prepare all journal entries to record each of the transactions that occurred in 2015-16 and the journal entry to record bad debt expense at 30 June 2016, assuming that 7 per cent of accounts receivable at 30 June are uncollectible.