On May 31,Cray Has $375,800 of Accounts Receivable

question 102

Essay

On May 31,Cray has $375,800 of accounts receivable.Cray uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $14,250.
1.Prepare journal entries to record the following selected May transactions.The company uses the perpetual inventory system.
2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its May 31 balance sheet.
a.Sold $415,200 of merchandise (that cost $249,000)to customers on credit.
b.Received $465,800 cash in payment of accounts receivable.
c.Wrote off $15,800 of uncollectible accounts receivable.
d.In adjusting the accounts on May 31,its fiscal year-end,the company estimated that 4.0% of accounts receivable will be uncollectible.

---

Definitions:

Bloodstream

is the flowing fluid in the circulatory system of the body, through which blood is pumped to carry nutrients, oxygen, and waste products to and from the cells.

Large Intestine

The last part of the digestive system, responsible for water absorption and the formation of feces.

Heavy Frequent

A term that might refer to the regular occurrence of something in large amounts, though in the context of health, it is not a recognized key term. NO.

Moderate Frequent

Describing actions or occurrences that happen at a moderate pace or degree and on a regular basis.