Presented below is information related to the accounts of Gulistan Inc. during the current year 2020.
1. An of the as of December 31, 2020, is as follows.
2. The control account has a debit balance of $372,400 on December 31, 2020.
3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $3,240 on November 3, 2020, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2020.
5. A credit balance exists in (60–90 days) of $4,840, which represents an advance on a sales contract.
Instructions
Assuming that the books have not been closed for 2020, make the necessary correcting entries.
