Selected account balances from a company's general ledger are listed below. Cash $200,000

Problem 9-2:  Direct Write-Off Method of Accounting for Bad Debts

Selected account balances from a company's general ledger are listed below.

  Cash$200,000

  Accounts Receivable (beginning balance)102,000

Required:

1.  Journalize the transactions a through f assuming the company uses the direct write-off method.

a.  Made cash sales of $1,000,000.

b.  Made credit sales of $800,000.

c.  Collected $700,000 during year from customers on account.

d.  Wrote off bad debts of $7,000 per year.

e.  Recovered bad debts of $600 from previous year.

f.   Recovered bad debts of $400 from current year.

2.  Post transactions a through f to the general ledger accounts provided below the general journal.