Zues inc. recorded credit sales of $1,750,000 during 2015

Prepare and present an action plan and strategy for delivery of human resources services, documenting the roles of the relevant personnel
May 13, 2019
portfolio only two pages at most
May 13, 2019
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Zues inc. recorded credit sales of $1,750,000 during 2015

Zues inc. recorded credit sales of $1,750,000 during 2015. At December 31, 2015, the company had a $250,000 debit balance in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful Accounts.

Required:

a.

Prepare the necessary adjusting journal entry at December 31 to record the estimated bad debt expense, assuming that bad debts are estimated at 1% of credit sales.

b.

Prepare the necessary adjusting journal entry at December 31 to record the estimated bad debt expense, assuming that bad debts are estimated at 8% of outstanding accounts receivable.

c.

Assume that a customer whose $3,300 account had been written off earlier in the year now pays the balance owed in full. Prepare the journal entry, or entries, to record the collection of this customer's account.