Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts received totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the begining of 2021 abd $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debt by applying a percentage of 10% to accounts receivable at the end of the year. Required 1. Prepare journal entries to record the writ-off of receivables, the collection of $1,200 for previously written off receivables. How would accounts receivable be shown in the 2021 year-end balance sheet?
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts received totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the begining of 2021 abd $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates
Required
1. Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
