Accounting records of a company have the following accounts: Accounts Receivable: $ 100,000 Allowance for Doubtful Accounts: ($ 7,000) Bad Debt Expense: $3,000 The company completed the follo
Accounting records of a company have the following accounts:
Accounts Receivable: $ 100,000
Allowance for Doubtful Accounts: ($ 7,000)
Bad Debt Expense: $3,000
The company completed the following transactions:
Jan 1 Accepted a note receivable from a customer in exchange for an existing Account Receivable of $1,000. The note will be due in 1 year and has a 5% interest rate.
Feb. 11 Wrote off the $200 receivable from Number1 Supplies Corporation as uncollectible.
Mar. 29 Recorded Service Revenue on Account for the period of $30,000
Mar. 30 Collected $75,000 from customers on Account
Apr. 1 Record the required adjustment for bad debts. The company estimates bad debt expense at 3% of credit sales.
Apr. 1 Record the required adjustment for interest revenue related to the January 1 note receivable.
*Record the transactions in the journal (explanations not needed)
