Ekblad Enterprise Inc completed the following transactions d

Ekblad Enterprise, Inc. completed the following transactions during 2014 and 2015:

Solution

Allowance for Bad Debts Date Particulars Debit Date Particulars Credit Jan 1 2014 Opening Balance 1000 Dec31 2014 Closing Balance 21000 Dec31 2014 Bad Debt Expense: (500000*4%) 20000 Total 21000 Total 21000 Jan 15 2015 Debbie Murray 1000 Jan 1 2015 Opening Balance 21000 Dec31 2015 Sundry Accounts receivable 2400 Dec31 2014 Bad Debt Expense: (600000*4%) 24000 Dec31 2015 Closing Balance 41600 Total 45000 Total 45000 Bad Debts Expense Date Particulars Debit Date Particulars Credit Dec31 2014 Bad Debt Expense: (500000*4%) 20000 Dec31 2014 Closing Balance 20000 Total 20000 Total 20000 Dec31 2015 Bad Debt Expense: (600000*4%) 24000 Dec31 2015 Closing Balance 24000 Total 24000 Total 24000