Kelly Klothing Designs started the cur rent year with the

following #3041
Kelly Klothing Designs started the cur-rent year with the following account balances related to
its customer accounts:Kelly reported credit sales of $ 1,253,000 for the current year and
recorded sales returns and allowances of $ 41,200 (sales value). Assume the sales were on
account. The company collected $ 56,000 on account and determined that a $ 35,000 account
due from Cruze Company was uncollectible.RequiredPrepare the journal entries required for
each of the following events: a. Credit sales and sales returns for the current year. Ignore the
effects on cost of goods sold and inventory. b. Cash collections for the year. c. The write- off of
the Cruze Company account. d. The current year’s provision for bad debts, assuming that Kelly
estimates bad debts at 4% of net credit sales. e. The current year’s provision for bad debts,
assuming that Kelly estimates bad debts at 15% of ending accounts receivable. Ignore part
d.View Solution:
Kelly Klothing Designs started the cur rent year with the following

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