Complete journal entries for the following transactions: 1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance.
| Complete journal entries for the following transactions: | ||||||
| 1. Sales for the month of June were $75,000. Using a percentage allowance method of 1% record the allowance. | ||||||
| 2. On June 30, it was determined that two customers with receivables totaling $980 were not likely to pay | ||||||
| 3. On July 15, surprisingly one of the customers who owed $400 and was written off on June 30, paid their bill | ||||||
| 4. On July 31, our fiscal year ends, the allowance for doubtful accounts has a balance of $1,780 | ||||||
| The company uses an aging method to calculate the desired allowance balance. | ||||||
| An accounts receivable aging shows the following: | ||||||
| 30 days or less = $68,500 | ||||||
| 31 -60 days = $10,400 | ||||||
| 61-90 days = $4,300 | ||||||
| Over 90 days = $1,200 | ||||||
| The company wants an ending reserve equal to: | ||||||
| 30 days or less = 1% | ||||||
| 31-60 days = 3% | ||||||
| 61-90 days = 5% | ||||||
| over 90 days = 15% | ||||||
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