Accounting for receivables Mosaic's Company balance sheet at December 31, 2018, reported the following: Accounts receivable.. .$2,500,000 Allowance for uncollectible accounts... ..$66,600 The following are the transactions to be taken into consideration for 20o19: a. Total credit sales for 2019 were $3,600,000. b. 2% of sales were estimated to be uncollectible. c. The company received cash payments on account during 2019 for $1,000,000 d. Accounts receivable identified to be uncollectible totaled $94,000. e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible. Requirements: 1. Prepare a Balance Sheet extract clearly showing the net realizable value of the receivables as at December 31, 2018? 2. Prepare the journal entries for the company's 2019 transactions. 3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T- accounts based on the information presented above. (Note: The opening balances and the transactions from the journal entries must be recorded in their respective accounts) 4. Prepare a Balance Sheet extract clearly showing the net realizable value of receivables as at December 31, 2019? (Show workings)
Accounting for receivables Mosaic's Company balance sheet at December 31, 2018, reported the following: Accounts receivable.. .$2,500,000 Allowance for uncollectible accounts... ..$66,600 The following are the transactions to be taken into consideration for 20o19: a. Total credit sales for 2019 were $3,600,000. b. 2% of sales were estimated to be uncollectible. c. The company received cash payments on account during 2019 for $1,000,000 d. Accounts receivable identified to be uncollectible totaled $94,000. e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible. Requirements: 1. Prepare a Balance Sheet extract clearly showing the net realizable value of the receivables as at December 31, 2018? 2. Prepare the journal entries for the company's 2019 transactions. 3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T- accounts based on the information presented above. (Note: The opening balances and the transactions from the journal entries must be recorded in their respective accounts) 4. Prepare a Balance Sheet extract clearly showing the net realizable value of receivables as at December 31, 2019? (Show workings)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please provide a narrative when doing questions 1-4. Thank you.
Transcribed Image Text:Accounting for receivables
Mosaic's Company balance sheet at December 31, 2018, reported the
following:
Accounts receivable..
.$2,500,000
Allowance for uncollectible accounts.. .$66,600
The following are the transactions to be taken into consideration for 2019:
a. Total credit sales for 2019 were $3,600,000.
b. 2% of sales were estimated to be uncollectible.
c. The company received cash payments on account during 2019 for $1,000,000
d. Accounts receivable identified to be uncollectible totaled $94,000.
e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables
is uncollectible.
Requirements:
1. Prepare a Balance Sheet extract clearly showing the net realizable value of the
receivables as at December 31, 2018?
2. Prepare the journal entries for the company's 2019 transactions.
3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-
accounts based on the information presented above. (Note: The opening balances
and the transactions from the journal entries must be recorded in their
respective accounts)
4. Prepare a Balance Sheet extract clearly showing the net realizable value of receivables
as at December 31, 2019? (Show workings)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education