Assume Thurmond Company\'s sales are credit sale. Practice to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. Year 2001 net credit sales=$2,021,000 and Allowance for Doubtful Accounts had credit balance before adjustments of $630 as of Dec. 31, 2001
During 2002, following transactions took place:
Jan 20-acct. of H. Scott, deceased customer owed $325, was determined uncollectible and written off.
Mar 16-informed that A. Nettles declared bankrupt, his acct. for $898 was written off
Apr 23-$906 for acct of J. Kenney written off as uncollectible
Aug 3-wrote off as uncollectible $750
Oct 20-wrote off as uncollectible $1,130
Oct 27-received check for $325 from estate of H. Scott (written off Jan. 20)
Dec 20-Cater Company paid $7,000 of $7,500 owed and since going out of business, balance of $500 was deemed uncollectible and written off.
What entries would appear on December 31, 2001 for Uncollectible Accts Expense and Allowance for Doubtful Accts? The balance in Allowance for Doubtful Accts after all transactions have been posted prior to final adjustment?
I have been trying to do this one now for a few weeks and my math just isn\'t working out. I\'ve read the material several times. I\'m just not getting. Can someone show me how to do this so I know where I\'m going wrong?!
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