Question

Janson Company detailed its transactions for the year below. Assuming Janson uses the allowance method for accounting for uncollectible accounts, journalize the each transaction by filling in the blanks. Disregard any impact on inventory. (12 points)

Type the account name under account title. For Debit and Credit, enter numbers in the format using commas "1,000"

1. Sales on account $475,000

2. Sales returns and allowances, $15,000

3. Collections from customers, $356,000

4. Accounts written off $5,000

5. Previously written off accounts of $500 were collected

Answer 1

Solution:

Janson Company
Journal Entries
Event	Particulars	Debit	Credit
1	Accounts receivables Dr	$475,000.00
	To Sales revenue		$475,000.00
	(To record sales on account)
2	Sales return and allowances Dr	$15,000.00
	To Accounts receivables		$15,000.00
	(To record sales returns)
3	Cash Dr	$356,000.00
	To Accounts receivables		$356,000.00
	(To record collection from customers)
4	Allowance for doubtful accounts Dr	$5,000.00
	To Accounts receivables		$5,000.00
	(To record write off of receivables)
5a	Accounts receivables Dr	$500.00
	To Allowance for doubtful accounts		$500.00
	(To reinstate receivables)
5b	Cash Dr	$500.00
	To Accounts receivables		$500.00
	(To record collection from customers account previously written off)