Geary,Inc.had the Following Sales During 2016

question 91

Essay

Geary,Inc.had the following sales during 2016:
Geary also had the following beginning and ending balances in the receivables accounts:

Geary,who uses the allowance method of accounting for uncollectible accounts,estimated that 3% of the credit sales will go uncollected.The credit card company charges Geary a 4% service charge.
Required: a)Prepare Geary's year-end adjusting journal entry for uncollectible accounts expense.
b)Prepare the entry to record the credit card sales.
c)What is Geary's cash flow from customers for the year?

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Definitions:

Consensus Crime

Consensus crime refers to activities that are universally agreed upon as wrong or harmful to society, and thus are legislated against, such as murder or theft.

White-Collar Crime

Refers to an illegal act committed by a respectable, high-status person in the course of work.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Prosecuted

The process of holding someone legally accountable for their actions, typically in a court of law.