Answer:
1. On June 1, 2016
Debit Accounts receivable $150,000
Credit Revenue $150,000
Being entries to record sales on account
On June 15, 2016
Debit Advertising expense $12,000
Credit Cash/Accounts payable $12,000
Being entries to record advertising expense incurred
For the assessment that 3% of all sales may be uncollectible, entries required are;
Debit Bad debt expense $4,500
Credit Allowance for doubtful debt $4,500
Being entries to account for doubtful debts
Step-by-step explanation:
When sales is made on credit/accounts, debit accounts receivable and credit revenue. In an instance where it is assessed that some or all of these receivables may be uncollectible, entries required are debit bad debt expense and credit allowance for doubtful debt.
When the debts are confirmed as bad, debit doubtful debt and credit accounts receivable to completely write off these debts.
3% of all sales
= 3% × $150,000
= $4,500
For expense incurred, debt expense and credit cash or accounts payable with the actual amount paid for the expense.