The Oberyn Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account...


(A) Prepare the journal entries to record the events above dates June 10, July 12, August 10 and October 25.


(B) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2018.


(C) Show the ledger account for Allowance for Doubtful Accounts with all entries for 2018 and the ending balance after adjustment at December 31, 2018.


The Oberyn Sign Company uses the allowance method in accounting for uncollectible accounts.<br>Past experience indicates that 6% of accounts receivable will eventually be uncollectible.<br>Selected account balances at December 31, 2017, and December 31, 2018, appear below:<br>Net Credit Sales<br>Accounts Receivable<br>Allowance for Doubtful Accounts<br>12/31/2017<br>$600,000<br>120,000<br>6,000<br>12/31/2018<br>$750,000<br>150,000<br>The following events related to receivables occurred during 2018;<br>Determined that the account of Jon Snow for $1,350 is unçollectible.<br>Determined that the account of Davos Seaworth for $4,500 is uncollectible.<br>Received a cheque for $300 as payment on account from Arya Stark, whose<br>account had previously been written off as uncollectible.<br>Accepted Margaery Tyrell Inc.'s $9,000, 6-month, 4% note in settlement of a<br>past-due balance on account.<br>June 10<br>July 12<br>Aug. 10<br>Oct. 25<br>

Extracted text: The Oberyn Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2017, and December 31, 2018, appear below: Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts 12/31/2017 $600,000 120,000 6,000 12/31/2018 $750,000 150,000 The following events related to receivables occurred during 2018; Determined that the account of Jon Snow for $1,350 is unçollectible. Determined that the account of Davos Seaworth for $4,500 is uncollectible. Received a cheque for $300 as payment on account from Arya Stark, whose account had previously been written off as uncollectible. Accepted Margaery Tyrell Inc.'s $9,000, 6-month, 4% note in settlement of a past-due balance on account. June 10 July 12 Aug. 10 Oct. 25

Jun 09, 2022
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