Comprehensive ADA - 2019 Tranasactions Tiger King and Friends, Inc began operations in 2019. Analyze the transactions

Question

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

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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

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Comprehensive ADA - 2019 Tranasactions Tiger King and Friends, Inc began operations in 2019

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Archived Solution

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

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

Bad Debt Expense a/c
Particulars	Amount	Particulars	Amount
To Accounts Receivables a/c	$ 4000

	$ 4000		$ 0