Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $51,200. The bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,120. Journalize the remaining journal entries for the 2023 year.
Dec. 2
Sold tents for $5,240 on account with a cost of $2,620. Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,320 and 20 written off. Unexpectedly received payment from Grouse Co. for $2,620. Estimated that 1% of accounts receivable recorded to date would be uncollectible.
Required: 1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately.