Click here to have a similar A+ quality paper

Order Now

An inexperienced accountant made the following entries. In each case, the date and the explanation to the entry is correct. Dec. 17 Cash 2,940 Sales Discount 60 Accounts Receivable 3,000 Dec 20 Cash 20,450 Notes Receivable 20,000 Interest Revenue 450 ( Collection of $20,000, 9% 90 day note dated Sept. 21. Interest had been accrued through Nov. 30) Dec 27 Cash 1,000 Bad Debts Expense 1,000 ( Collection of account previously written off as uncollectible under the allowance method) Dec 31 Bad Debts Expense 1,600 Allowance for Doubtful Accounts 1,600 (To recognize estimated bad debts based on 2% of net sales of $800,000.) INSTRUCTIONS Prepare the correcting entries or make the entries like it should have been originally made.

An inexperienced accountant made the following entries. In each case, the date and the explanation to the entry is correct.

Dec. 17 Cash 2,940

Sales Discount 60

Accounts Receivable 3,000

Dec 20 Cash 20,450

Notes Receivable 20,000

Interest Revenue 450

( Collection of $20,000, 9% 90 day note dated Sept. 21.

Interest had been accrued through Nov. 30)

Dec 27 Cash 1,000

Bad Debts Expense 1,000

( Collection of account previously written off as uncollectible

under the allowance method)

Dec 31 Bad Debts Expense 1,600

Allowance for Doubtful Accounts 1,600

(To recognize estimated bad debts based on 2% of net sales of $800,000.)

INSTRUCTIONS

Prepare the correcting entries or make the entries like it should have been originally made.

Click here to have a similar A+ quality paper

Order Now