At year-end (December 31), Alvare Company estimates its bad debts as 0.40% of its annual credit sales of $686,000. Alvare 1.
value:
3.34 points
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Following are selected transactions Deshawn Company for 2010 and 2011. |
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Dec. |
13 |
Accepted a $28,000, 45-day, 7% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable. |
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31 |
Prepared an adjusting entry to record the accrued interest on the Clark note. |
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Jan. |
27 |
Received Clark’s payment for principal and interest on the note dated December 13. |
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Mar. |
3 |
Accepted a $22,000, 10%, 90-day note dated March 3 in granting a time extension on the pastdue account receivable of Shandi Company. |
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17 |
Accepted a $20,000, 30-day, 8% note dated March 17 in granting Juan Torres a time extension on his past-due account receivable. |
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Apr. |
16 |
Torres dishonors his note when presented for payment. |
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May |
1 |
Wrote off the Torres account against the Allowance for Doubtful Accounts. |
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June |
1 |
Received the Shandi payment for principal and interest on the note dated March 3. |
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Prepare journal entries for the above transactions for 2011. (Use 360 days a year. Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the “$” sign in your response.) |
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Date |
General Journal |
Debit |
Credit |
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2011 |
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Jan. |
27 |
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$ |
$ |
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$ |
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records its Bad Debts Expense for that estimate. On the following February 1, Alvare decides that the $343 account of P. Coble is uncollectible and writes it off as a bad debt. On June 5, Coble unexpectedly pays the amount previously written off. |
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Prepare the journal entries of Alvare to record these transactions and events of December 31, February 1, and June 5. (Omit the “$” sign in your response.) |
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