On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000.
On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions:
a. The company made a credit sale of $300,000.
b. The company collected accounts receivable for 350,000.
c. The company wrote off the uncollectible accounts for $12,000.
d. The company collected the receivable of $4,000 that had been written off previously.
Required Note: Show calculation:
(1) Prepare journal entries to record the above four transactions.
(2) Assume that 2% of the company’s accounts receivable cannot be collected, prepare the
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