Question

Question One ( 8 pts )4.3

  ALISSA company sold on credit inventories on june 8 to ALSALEH for $ 2,100 . Later on, after a period of six months, ALISSA decided on December 8 that the debt needs to be written off as bad.

Journalize the sales entry on June 8 and the writing off on December 8.

June 8

........

Question 2 ( 12 pts )6.3,7.4,8.2,8.3

XYZ Company had the following Journal entries on their books during the month of March. As you can see, some errors were done during the recording process. Correct the errors by showing for each transaction the following:

- Incorrect entry

- Correct entry

- Correcting entry

March 4 paid salaries $ 3,500 cash for the employees, It was recorded as $ 3,000   

instead.

March 10 Purchased equipment for $ 10,000 on account and it was recorded as

$7,000.

  

Incorrect Correct correcting

March 4

March 10

December 8

.........

Question Three : Answer by True or False. Circle the correct answer (5 pts ) underpinning knowledge

1-Correct entries and correcting entries mean exactly the same thing. True False

2-Bad debt is considered to be an asset account . True False

3-The normal balance for bad debt is credit. True False

4- It is not necessary to journalize uncollectible account receivables. True False

5-The normal balance for Accounts receivable is a debit.   True False

Answer 1