Smarkly Limited uses the income statement approach to account for bad debts and allowance for doubtful debts. The following information is available: 1 2 3 4 5 Past experience suggests that 1 per cent of net credit sales will become uncollectable. Credit sales for the year ended 30 June 2022, $3 200 000. Cash sales for the year ended 30 June 2022, $700 000. Bad debts written off during the year ended 30 June 2022, $17 000. Present balance of allowance for doubtful debts account, $21 000. Prepare the necessary journal entry or entries to account for bad debts for the year ended 30 June 2022. Show all workings.
Smarkly Limited uses the income statement approach to account for bad debts and allowance for doubtful debts. The following information is available: 1 2 3 4 5 Past experience suggests that 1 per cent of net credit sales will become uncollectable. Credit sales for the year ended 30 June 2022, $3 200 000. Cash sales for the year ended 30 June 2022, $700 000. Bad debts written off during the year ended 30 June 2022, $17 000. Present balance of allowance for doubtful debts account, $21 000. Prepare the necessary journal entry or entries to account for bad debts for the year ended 30 June 2022. Show all workings.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
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