Journalize the Following Transactions for Allan Company Using the Allowance

question 80

Essay

Journalize the following transactions for Allan Company using the allowance method:
April 21 Sold $560 of merchandise on account to Bill Smith.
June 30 Bill Smith filed bankruptcy and his account was written off.
August 1 Replaced Joe's $4,500 receivable balance with a 4%- 8month note.
Dec 31 Recorded Bad Debts Expense based on 6% of credit sales of $120,000
Dec 31 Recorded interest on the note.