Response to the following problem:
The Ruth Allen Co. had these account balances at the end of the calendar year: accounts receivable, $541,300; allowance for bad debts, $10,912.
Make entries in general journal form, and post to the Allowance for Dad Debts "T" account only, for the following transactions for the new year:
1. Sales made on credit amounted to $5,456,575.
2. Cash sales made during the year amounted to $I21,214.
3. Collections of accounts during the year: actual cash collected, S5,381 ,642; sales discount. allowed, $130,004.
4. Wrote off uncollectible accounts amounting to $9,280.
5. Collected $2,340 for an Recount that had previously been written off.
6. Made the adjusting entry to recognise bad debts based on 1% of net credit sales for the year.