The Trial Balance of Lozier Inc

question 109

Essay

The trial balance of Lozier Inc. shows a $52,000 outstanding balance in Accounts Receivable at the end of 2011. During 2012, 80 percent of the total credit sales of $2,600,000 was collected, and no receivables had been written off as uncollectible. The company uses the allowance method to account for bad debts and estimated that 1 percent of total credit sales would be uncollectible. During 2013, the account of El Cajon Company, with a balance of $3,500, was judged to be uncollectible and written off. At the end of 2013, the amount previously written off was collected from El Cajon.
Prepare the necessary journal entries to record

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Definitions:

Neutral Buffer

A statement or phrase used at the beginning of a communication to ease into the subject without showing a strong emotion or bias.

Direct Approach

A communication strategy where the main point or message is presented at the beginning, often used in business and professional writing.

Neutral Buffer

A statement or action used to gently transition between topics or to mitigate potential conflict, avoiding bias or strong emotion.

Indirect Approach

A communication strategy that avoids direct confrontation or outright statements, often used to address sensitive topics.