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Leis Co.

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At December 31, 2007, Leis Co. reported the following information on its balance sheet.

Accounts receivable $960,000
Less: Allowance for doubtful accounts 80,000

During 2008, the company had the following transactions related to receivables.

1. Sales on account $3,200,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,810,000
4. Write-offs of accounts receivable deemed uncollectible 90,000
5. Recovery of bad debts previously written off as uncollectible 24,000

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Solution Preview

At December 31, 2007, Leis Co. reported the following information on its balance sheet.

Accounts receivable $960,000
Less: Allowance for doubtful accounts 80,000

During 2008, the company had the following transactions related to receivables.

1. Sales on account $3,200,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,810,000
4. Write-offs of accounts receivable deemed uncollectible 90,000
5. Recovery of bad debts ...

Solution Summary

This solution is comprised of a detailed explanation to prepare the journal entries to record each of these five transactions.

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