On January 1, 2009, the Union Trading Company had outstanding receivables of $800,000 and allowance for doubtful accounts of $ 19,000.
During the period 1/1 to 6/30, 2009, the firm made $1,500,000 of credit sales, wrote off $22,000 of receivables as uncollectible, and collected $1,200,000 in cash from credit customers.
On 6/30, the company estimated uncollectible accounts to be 2% of outstanding receivables.
Required:
A. Calculate the bad debt expense for this period.
B. Make necessary journal from 1/1 to the adjusting of the receivables on 6/30.
C. Show the ledger accounts: Accounts receivable and Allowance for doubtful accounts
