Accounting Problem--Trial Balance
The ff. are selected balances taken from the adjusted trial balance of Morgan Industries as of March 17, 2009:
Accounts Receivable 120,000
Allowance for Doubtful Accounts 6, 000
Sales 750, 000
Sales Returns and Allowances 1, 500
Sales Discount 600
For the year 2010, the ff. transaction took place:
a. Sales amounted to $ 1,500,000 of which 60% is on credit, which terms of 2/10, n/30.
b. Collections from account customers amounted to $800, 000 out of which $388, 400 were collected outside the discount period.
c. Sales Returns and Allowances amounted to $1, 800 out of which $900 cash refunds were given to customers.
a. Compute for the balance of the accounts receivable as of March 17, 2009. Use T-Accounts
b. Give the adjusting entry. Support with an Allowance for Doubtful Accounts T-account.
How do I balance this financial statement? I need to record the transactions in there entirety and find the balance for accounts recievable and allowance for doubtful accounts.