At December 31, 2018, Splish Brothers Inc. Company had a credit balance of $19,100 in Allowance...

At December 31, 2018, Splish Brothers Inc. Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2019, Splish Brothers Inc. wrote off accounts totaling $11,100. One of those accounts ($2,900) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $29,900.

Prepare journal entries to record the 2019 transactions of Splish Brothers Inc. Company

b)On July 4, Blossom Restaurant accepts a Visa card for a $400 dinner bill, visa changes 2% fee. prepare the journal on the book related to this transnaction

Expert Solution

Answer

a)
Accounts title	Debit	Credit
Allowance for Doubtful accounts	11100
Accounts Receivable		11100

Accounts Receivable	2900
Allowance for Doubtful accounts		2900

Cash	2900
Accounts Receivable		2900

Bad debts expense	19000		29900-(19100-11100+2900)
Allowance for Doubtful accounts		19000

b)
Account Titles	Debit	Credit
Cash (400-2%)	$ 392
Service Charge Expense (400*2%)	$ 8
Sales Revenue		$ 400

ekkarill92 answered 2 years ago

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