a. During January, the company provided services for $33,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $16,500 of accounts receivable. d. On February 15, the company wrote off $200 account receivable. e. During February, the company provided services for $23,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,000 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 on the account written off one month earlier. i. On March 31, the company accrued interest earned on the note. j. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unadjusted credit balance of $1,130. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Current Assets: WEB WIZARD, INCORPORATED Partial Balance Sheet At March 31 Assets Total Accounts Receivable, Net of Allowance $ 200 330 15,700 380 $ 16,610 0 to 30 $ 120 6,100 380 $ 6,600 3% Number of Days Unpaid 31 to 60 61 to 90 $70 $ 10 7,700 1,200 $ 1,210 20% $7,770 10% PA8-4 (Algo) Part 3 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31. (Do not round intermediate calculations.) Over 90 $ 330 700 $1,030 40%
a. During January, the company provided services for $33,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $16,500 of accounts receivable. d. On February 15, the company wrote off $200 account receivable. e. During February, the company provided services for $23,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,000 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 on the account written off one month earlier. i. On March 31, the company accrued interest earned on the note. j. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unadjusted credit balance of $1,130. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Current Assets: WEB WIZARD, INCORPORATED Partial Balance Sheet At March 31 Assets Total Accounts Receivable, Net of Allowance $ 200 330 15,700 380 $ 16,610 0 to 30 $ 120 6,100 380 $ 6,600 3% Number of Days Unpaid 31 to 60 61 to 90 $70 $ 10 7,700 1,200 $ 1,210 20% $7,770 10% PA8-4 (Algo) Part 3 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31. (Do not round intermediate calculations.) Over 90 $ 330 700 $1,030 40%
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:a. During January, the company provided services for $33,000 on credit.
b. On January 31, the company estimated bad debts using 2 percent of credit sales.
c. On February 4, the company collected $16,500 of accounts receivable.
d. On February 15, the company wrote off $200 account receivable.
e. During February, the company provided services for $23,000 on credit.
f. On February 28, the company estimated bad debts using 2 percent of credit sales.
g. On March 1, the company loaned $2,000 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $200 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes
the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has
an unadjusted credit balance of $1,130.
Alabama Tourism
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
Customer
Total Accounts Receivable
Estimated Uncollectible (%)
PA8-4 (Algo) Part 3
Current Assets:
WEB WIZARD, INCORPORATED
Partial Balance Sheet
At March 31
Assets
Total
$ 200
330
15,700
380
$ 16,610
Accounts Receivable, Net of Allowance
0 to 30
$ 120
6,100
380
$ 6,600
3%
Number of Days Unpaid
31 to 60 61 to 90
$ 70
$ 10
1,200
7,700
$ 7,770
10%
$ 1,210
20%
3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a
classified balance sheet at the end of the quarter on March 31. (Do not round intermediate calculations.)
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