The Branson Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred:Mar 7Branson Company determined that the $2,000 account receivable of the Bing Company was uncollectible, and wrote it off.Jun 9Bing Company paid $1,500 of the amount owed to the BransonCompany. Branson Company does not expect further collections from the Bing Company.Dec 31Branson Company estimates that 1.5% of its $900,000 of credit sales will be uncollectible.Prepare the general journal entries to record these transactions.
What will be an ideal response?
1.
| Mar. 7 | Allowance for Uncollectible Accounts................. | 2,000 | ? |
| ? | Accounts Receivable-Bing............................ | 2,000 |
| Jun. 9 | Accounts Receivable-Bing.................................. | 1,500 | ? |
| ? | Allowance for Doubtful Accounts................. | ? | 1,500 |
| ? | Cash..................................................................... | 1,500 | ? |
| ? | Accounts Receivable -Bing............................. | 1,500 |
| Dec 31 | Bad Debts Expense ($900,000 * .015)................ | 13,500 | ? |
| ? | Allowance for Doubtful Accounts................. | ? | 13,500 |
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