An Inexperienced Accountant Made the Following Entries Required: Prepare the Correcting Entries

question 89

Essay

An inexperienced accountant made the following entries. In each case, the explanation to the entry is correct. $$\begin{array} { | l | l | r | r | } \hline \text { Dec. 17 } & \text { Cash } & 4,410 & \\\hline & \begin{array} { l } \text { Trade Accounts Receivable } \\\text { (To record collection of Dec. 10 sales, net of } \\\$ 90 \text { sales discounter) }\end{array} & & 4,410 \\\hline 27 & \text { Cash } & 1,200 & \\\hline & \begin{array} { l } \text { Bad Debts Expense } \\\text { (Collection of account previously written off } \\\text { as uncollectible under allowance method) }\end{array} & & 1,200 \\\hline 31 & \text { Bad Debts Expense } & 5,000 & \\\hline & \begin{array} { l } \text { Trade Accounts Receivable } \\\text { (To reduce the receivables to their net } \\\text { fealizable value of } \$ 580,000 \text {. Balances } \\\text { before adjustment: } \\\text { Accounts Receivable } = \$ 600,000 \\\text { Allowance for Doubtful Accounts } = 15,000 \\\text { credit) }\end{array} & &5,000 \\\hline\end{array}$$ Required: Prepare the correcting entries.

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Definitions:

Output

The total quantity of goods or services produced within a given period by a firm, industry, or country.

Population Growth Rates

Measures the increase in a population's size within a specific time frame, considering factors such as births, deaths, and migration.

Educational Attainment

The highest level of education an individual has completed, which can affect employment opportunities and income levels.

Standard Of Living

The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or a certain geographic area.