Transactions and Entries in Sunland Company's Balance Sheet

Collection of Accounts Receivable

Transaction: Accounts receivable of $147,000 were collected, including accounts of $64,400 on which 2% sales discount was allowed.

Entry: Debit Cash account for $144,560, Credit Accounts receivable account for $147,000, Credit Sales discount account for $2,940.

Receipt from Written-off Account

Transaction: $5,620 was received in payment of an account that was previously written off in 2024.

Entry: Debit Accounts receivable account for $5,620, Credit Allowance for doubtful accounts for $5,620.

Write-off of Customer Accounts

Transaction: Customer accounts amounting to $26,500 were written off during the year.

Entry: Debit Allowance for doubtful accounts for $26,500, Credit Accounts receivable account for $26,500.

Adjustment of Allowance for Doubtful Accounts

Transaction: At year-end, the allowance for doubtful accounts needed an estimated balance of $26,900 based on an analysis of aged accounts receivable.

Entry: Debit Bad debt expense account for $600, Credit Allowance for doubtful accounts for $600.

These entries are essential in reflecting the transactions in Sunland Company's balance sheet. Each entry ensures that the company's financial records accurately portray the collection of accounts receivable, receipt from a written-off account, write-off of customer accounts, and adjustment of the allowance for doubtful accounts.