Home /
Expert Answers /
Accounting /
outdoor-equipment-oe-sells-camping-equipment-on-december-1-the-accounts-receivable-account-had-a-pa651
(Solved): Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a ...
Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,700, the bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,070. Journalize the remaining journal entries for the 2023 year.
| Dec. | 2 | Sold tents for $5,140 on account with a cost of $2,570. |
| 20 | Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,270 and Grouse Co. with an accounts receivable balance of $2,570 were uncollectible and needed to be written off. | |
| 23 | Unexpectedly received payment from Grouse Co. for $2,570. | |
| 31 | Estimated that 10% of accounts receivable recorded to date would be uncollectible. |
Required:
1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately.
Record the sales. Record the cost of sales and reduce inventory. Record the write-off of uncollectible accounts for Rocky Co. and Grouse Co. separately. Record the reinstate account of Grouse Co. Record the full payment of account. Record the estimate for uncollectible accounts. Note: journal entry has been entered
2. Post the T-account for accounts receivable, bad debt expense, and allowance for doubtful accounts. Determine the ending balance or each account.