Credit sales method, Cost Accounting

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What are the journal entries to recognize each of the below events.

a.   The firm records bad debt expense of 5% of credit sales, which were $300.  The firm uses the Percentage of Credit Sales Method. Journalize bad debt expense.

Assets

Liabilities

Owners' Equity

Debit

Credit

$

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b. The firm subsequently writes-off $10 of receivables.  Record the write-off.

Assets

Liabilities

Owners' Equity

Debit

Credit

$

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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