BeleVu Supplies showed the following selected adjusted

balances at its #4432

BeleVu Supplies showed the following selected adjusted balances at its December 31, 2013,
year-end:During the year 2014, the following selected transactions occurred:a. Sales totaled
$2,800,000, of which 25% were cash sales (cost of sales $1,804,000).b. Sales returns were
$108,000, half regarding credit sales. The returned merchandise was scrapped.c. An account
for $24,000 was recovered.d. Several accounts were written off; $26,000.e. Collections from
credit customers totaled $1,790,000 (excluding the recovery in (c) above). Part ARequired 1.
Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts
for Accounts Receivable and Allowance for Doubtful Accounts.Part BRequired2. Prepare the
December 31, 2014, adjusting entry to estimate bad debts assuming that uncollectible accounts
are estimated to be 1% of net credit sales.3. Show how accounts receivable will appear on the
December 31, 2014, balance sheet.4. What will bad debt expense be on the income statement
for the year ended December 31, 2014?Part C (independent of Part B) Required5. Prepare the
December 31, 2014, adjusting entry to estimate bad debts assuming that uncollectible accounts
are estimated to be 3% of outstanding receivables.6. Show how accounts receivable will appear
on the December 31, 2014, balance sheet.7. What will bad debt expense be on the income
statement for the year ended December 31, 2014?View Solution:
BeleVu Supplies showed the following selected adjusted balances at its

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