During January of 2007, the following transactions
occurred. Mulder uses the perpetual inventory system. Mulder expects 6% of
accounts receivable to eventually be deemed uncollectable. Mulder had a
beginning balance of $19,780 in A/R with an allowance of $1,000.
|
Jan 1 |
Mulder accepted a 4-month, 12% note from Alien |
|
Jan 3 |
Mulder wrote off as uncollectible the accounts |
|
Jan 8 |
Mulder purchased $17,200 of inventory on account |
|
Jan 11 |
Mulder sold Merchandise for $25,000 on |
|
Jan 17 |
Mulder collected $21,900 from customers on |
|
Jan 24 |
Mulder received payment in full ($230) from |
|
Jan 31 |
Mulder paid other operating expenses totaling |
|
Adj entry |
Interest is recorded for the month on the note |
|
Adj entry |
Bad debt expense is recorded for the month |
Instructions
Prepare the appropriate journal entries for House
Medical for January.
|
Date |
Description |
P/R |
Debit |
Credit |
