Presented below is information from Bridgeport Computers Incorporated.
July 1 Sold $22,300 of computers to Robertson Company with terms 2/15, n/60. Bridgeport uses the gross method to record cash discounts. Bridgeport estimates allowances of $1,254 will be honored on these sales.
10 Bridgeport received payment from Robertson for the full amount owed from the July transactions.
17 Sold $292,800 in computers and peripherals to The Clark Store with terms of 1/10, n/30.
30 The Clark Store paid Bridgeport for its purchase of July 17.
Prepare the necessary journal entries for Bridgeport Computers.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit July 1July 10July 17July 30 (To record sales revenue.) (To record allowance for sales returns.) July 10 July 1July 10July 17July 30 July 1July 10July 17July 30
Exercise 7-7
Indigo Company reports the following financial information before adjustments.
Dr. Cr.
Accounts Receivable $138,100
Allowance for Doubtful Accounts $2,970
Sales Revenue (all on credit) 845,000
Sales Returns and Allowances 53,310
Prepare the journal entry to record bad debt expense assuming Indigo Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,410 debit balance.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)