2) Choice Clothing completed the following selected transactions during 2019 and 2020:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![2) Choice Clothing completed the following selected transactions during 2019 and 2020:
Date
Transactions
2019
Dec. 31
Estimated that bad debt expenses for the year was 3% of credit sales of $748,000
and recorded that amount as expense.
31 Made the closing entry for bad debt expense.
2020
Feb. 26 Sold inventory to Bruce Jones, $1,412, on credit terms of 2/10, n/30. Ignore the
cost of goods sold.
29 Wrote off Jones's account as uncollectible after repeated efforts to collect.
Received $1.150 from Bruce Jones, along with a letter stating her intention to pay
her debt in full within 45 days. Reinstated the account in full.
Jul,
Sep. 6
Oct. 21 Received the balance due from Jones.
Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Sean
Rooney, $1,610; Sargent Limited, $3,075; and Linda Lod, $11,580.
31
Estimated that bad debt expense for the year was 3% of credit sales of $860,000
and recorded the expense.
31
Made the closıng entry for bad debt expense.
a Record the transactions in the general journal. Choices records all amounts to the nearest
cent. Present all amounts to two decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec363e2c-f846-4493-b4ed-b5529cf7b4ef%2F1f954ed8-54ac-4ec1-acc7-205b14ad7634%2Fdxek5t8_processed.jpeg&w=3840&q=75)
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