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Homework answers / question archive / Comprehensive ADA - 2019 Tranasactions Tiger King and Friends, Inc began operations in 2019
Comprehensive ADA - 2019 Tranasactions Tiger King and Friends, Inc began operations in 2019. Analyze the transactions for 2019 and 2020 and post the the T- Accounts. Label your entries with the appropriate transaction letter. Be sure to carry balances of permanent accounts to the following year. During 2019 Tiger King and Friends, Inc had the following transactions: 11. $200,000 of credit sales 12. $80,000 payment collected on those sales 3. Wrote off a $4,000 receivable from C.Baskn Company, a customer who went into bankruptcy. 4. Tiger King and Friends, Inc estimates 5% of is Accounts Receivables at |12/31/19 will be uncollectable.
Determine at 12/31/2019: Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense Sales Bad Debt Exp CASH TTT I Î Accounts Receivable Allowance for Doubtful Accounts
Journal Entries
| S. No. | Particular | Debit | Credit |
| 1 | Accounts Receivable a/c | $200000 | |
| Sales a/c | $200000 | ||
| (Being sales made on credit) | |||
| 2 | Cash a/c | $80000 | |
| Accounts Receivable a/c | $80000 | ||
| (Being cash received) | |||
| 3 | Bad Debt Exp. a/c | $4000 | |
| Accounts Receivable a/c | $4000 | ||
| (Being bad debts booked against C. Baskin Company) | |||
| 4 | Profit & Loss a/c | $5800 | |
| Allowance for doubtful Debts a/c | $5800 | ||
|
(Being allowance for doubtful debts booked) (5% of (200000 - 80000 - 4000), i.e. $5800) |
| Balance at 12/31/2019 | |
| Accounts Receivable | $116000 |
| Allowance for doubtful Debts a/c | $5800 |
| Bad Debt Exp. a/c | $4000 |
T-Account
| Sales | |||
| Particulars | Amount | Particulars | Amount |
| By Accounts Receivables a/c | $200000 | ||
| $0 |
$200000 |
| Cash | |||
| Particulars | Amount | Particulars | Amount |
| To Accounts Receivables a/c | $ 80000 | By Balance c/f | $ 80000 |
| $ 80000 | $ 80000 | ||
| To Balance b/d | $ 80000 |
| Accounts Receivables a/c | |||
| Particulars | Amount | Particulars | Amount |
| To Sales a/c | $ 200000 | By Cash a/c | $ 80000 |
| By Bad Debts Expense a/c | $ 4000 | ||
| By Balance c/f | $116000 | ||
| $200000 | $200000 | ||
| To Balance b/d | $ 116000 |
| Allowance for doubtful Debts a/c | |||
| Particulars | Amount | Particulars | Amount |
| To Balance c/f | $ 5800 | By Profit & loss a/c | $ 5800 |
| $ 5800 | $ 5800 | ||
| To Balance b/d | $ 5800 |
| Bad Debt Expense a/c | |||
| Particulars | Amount | Particulars | Amount |
| To Accounts Receivables a/c | $ 4000 | ||
| $ 4000 | $ 0 |
