Homework SourseJournalize these transactions on Jan 1 2018 Meccanotecnica C
Journalize these transactions: on Jan 1, 2018 Meccanotecnica Co. had $42,000 debit balance in Accounts receivable and $3,800 credit balance in Allowance for uncollectible accounts. In 2018 The company sold on account for 860,000, collected on account 320,000, and recorded write offs of uncollectible receivable for $2,000. The Co. records Uncollectible account expense at the end of the year using the age of accounts method. The aging analysis produces a figure of $4,200 for the estimate of uncollectible accounts at the end of year
Please help me journals in very Details to understand if possible. Thank you.
Journalize these transactions: on Jan 1, 2018 Meccanotecnica Co. had $42,000 debit balance in Accounts receivable and $3,800 credit balance in Allowance for uncollectible accounts. In 2018 The company sold on account for 860,000, collected on account 320,000, and recorded write offs of uncollectible receivable for $2,000. The Co. records Uncollectible account expense at the end of the year using the age of accounts method. The aging analysis produces a figure of $4,200 for the estimate of uncollectible accounts at the end of year
Please help me journals in very Details to understand if possible. Thank you.
Solution
Accounts receivable 860000 Sales revenue 860000 Cash 320000 Accounts receivable 320000 Allowance for uncollectible accounts 2000 Accounts receivable 2000 Bad debts expense 2400 =4200-(3800-2000) Allowance for uncollectible accounts 2400
