Trinniemon
Jul 1, 2011, 08:51 PM
Transactions in 2004 include the following:
1.Accounts receivable of $138,000 were collected including accounts of $40,000 on which 2% sales discounts were allowed.
2.$6,300 was received in payment of an account which was written off the books as worthless in 2003. (Hint: Reestablish the receivable account.)
3.Customer accounts of $17,500 were written off during the year.
4.At year-end the Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable.
1.Accounts receivable of $138,000 were collected including accounts of $40,000 on which 2% sales discounts were allowed.
2.$6,300 was received in payment of an account which was written off the books as worthless in 2003. (Hint: Reestablish the receivable account.)
3.Customer accounts of $17,500 were written off during the year.
4.At year-end the Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable.