Wondra Supplies showed the following selected adjusted balances at its December

Saturday July 16, 2022

Wondra Supplies showed the following selected adjusted balances at its December 31 2010year-end:Accounts receivableDebits 490000Allowance for doubtful accountsCredits 12460During the year 2011 the following selected transactions occurred:a. Sales totalled $1 725000 of which 85% were credit sales (cost of sales $1 207500).b. Sales returns were $49000 all regarding credit sales. The returned merchandise was scrapped.c. An account for $29000 was recovered.d. Several accounts were written off including one very large account; the total was $1 32500.e. Collected accounts receivable of $1 500500 (excluding the recovery in (c) above). Salesdiscounts of $26000 were taken.Part ARequired1 . Journalize transactions (a) through (e). You may find it useful to post your entries toT-accounts for Accounts Receivable and Allowance for Doubtful Accounts.Part BRequired2. Prepare the December 31 201 1 adjusting entry to estimate bad debts assuming uncol-lectible accounts are estimated to be 8% of net credit sales.3. Show how accounts receivable will appear on the December 31 201 1 balance sheet.4. What will bad debt expense be on the income statement for the year ended December 31 201 1 ?Part C (independent of Part B)Required5. Prepare the December 31 201 1 adjusting entry to estimate bad debts assuming uncol-lectible accounts are estimated to be 4% of outstanding receivables.6. Show how accounts receivable will appear on the December 31 201 1 balance sheet.7. What will bad debt expense be on the income statement for the year ended December 31 2011 ?


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