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The percentage of receivables approach to estimating bad debts expense is used by Hayes Company

Accounting

The percentage of receivables approach to estimating bad debts expense is used by Hayes Company. On February 28, the firm had accounts receivable in the amount of $585,000 and Allowance for Doubtful Accounts had a credit balance of $370 before adjustment. Net credit sales for February amounted to $3,000,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Mark Dole for $2,100 was determined to be uncollectible and written off. However, on March 31, Dole received an inheritance and immediately paid his past due account in full.
 
 
 

Prepare the journal entries made by Hayes Company on the below dates:(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

 

1. February 28
2. March 10
3. March 31

 

Date Account Titles and Explanation Debit Credit
Feb. 28      
     
Mar. 10      
     
Mar. 31      
     
(To reinstate an account previously written off)
Mar. 31      
     
(To record payment on account in full)
List Of Accounts CLOSE Additional Exercise 20
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Doubtful Accounts
Bad Debt Expense
Cash
Common Stock
Cost of Goods Sold
Dividends
Income Tax Expense
Income Taxes Payable
Interest Receivable
Interest Revenue
Inventory
No Entry
Notes Receivable
Other Operating Expenses
Other Receivables
Retained Earnings
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Service Charge Expense
Supplies
Supplies Expense

 

 

 

 

 

SHOW LIST OF ACCOUNTS
 
 
 
Assume no other transactions occurred that affected the allowance account during March. Determine the balance of Allowance for Doubtful Accounts at March 31.
 
Balance of Allowance for Doubtful Accounts at March 31 $
 

SHOW LIST OF ACCOUNTS

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