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    Journal Entries - Daniel Company Accounts Receivable

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    The 31 December 2004 balance sheet of Daniel Company showed an Accounts Receivable balance of $440,000 and a credit balance in Allowance for Uncollectible Accounts of $88,000.

    During the financial year ended 31 December 2005, the following transactions occurred: sales of $2,338,000 which included credit sales of $2,104,000; credit sales returns $127,000; collection from credit customers $1,932,000; discount allowed $120,000; accounts written off $30,000; collection of previously written off accounts $9,000.

    Required:
    A. Using the above information, prepare journal entries to record:
    1. credit sales;
    2. credit sales returns;
    3. collection from credit customers;
    4. discount allowed; and
    5. collection of previously written off accounts.

    B. Prepare journal entries to record the bad debts expenses for the year 2005 using the following bases:
    1. direct write-off method;
    2. allowance method and the percentage of sales basis (bad debts expense was estimated as 1% of net credit sales); and
    3. allowance method and the percentage of accounts receivable basis (estimated bad debts amounted to 6% of accounts receivable)

    C. Prepare the Accounts Receivable account for the year 2005.

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    https://brainmass.com/business/the-accounting-cycle/journal-entries-daniel-company-accounts-receivable-138464

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    A. Using the above information, prepare journal entries to record:
    1 credit sales;
    Debit Credit
    Debtors A/c ...

    Solution Summary

    The solution assists with creating journal entries for the Daniel Company accounts receivable.

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