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Problem 15 Rectification of errors

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Problem 15 10 points;An inexperienced accountant made the following entries. In each case, the date and the explanation to the entry is correct.;Dec. 17 Cash 2,940;Sales Discount 60;Accounts Receivable 3,000;Dec 20 Cash 20,450;Notes Receivable 20,000;Interest Revenue 450;(Collection of $20,000, 9% 90 day note dated Sept. 21.;Interest had been accrued through Nov. 30);Dec 27 Cash 1,000;Bad Debts Expense 1,000;(Collection of account previously written off as uncollectible;under the allowance method);Dec 31 Bad Debts Expense 1,600;Allowance for Doubtful Accounts 1,600;(To recognize estimated bad debts based on 2% of net sales of $800,000.);INSTRUCTIONS;Prepare the correcting entries or make the entries like it should have been originally made.

 

Paper#79464 | Written in 18-Jul-2015

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