Bad debt costs the question mark?
Need to understand this issue Help: the company 141,000, which was 70.55 thousand sold by credit card. / R switch, and the suspect accounts for the debit balance of payments 8300 665 will show a credit balance. / R switch is set to 56.44 thousand amounted. The 1.AN 1245 / R bad debt is written immediately. 2. Credit sales in determining the Basing on the expected loss of 2% of bad debt accounting policy was to continue The rest of the year. I need help to determine how and Why are these two items on my journal entries to verify. I expect no mercy on the soul to me
If I'm right Understanding. 1) Disaster Recovery Sales – 665 CR questionable accounts – 665 2) Dr. suspicious accounts – Dr. Sales 665 – 580 CR / R for 1245 is now a question of your accounts will be 0 3) Sales 2% of 2820, they already write off 1245. So by the end of the year Transactions will be: Dr. revenue – 1575 CR suspicious accounts – 1575 revenues 141,000 100% bad —————————————— Total liabilities -665 -580 -1575 sales of 138,180 / R switch, 8300, bad debt -1245 —————————————– 4 / R switch suspicious accounts 7055 665-665 1575 ——————————————– 1575
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