At the beginning of 2017, Penman Company had the following (normal) account balances in its financial records: Accounts Receivable $127,000 Allowance for Uncollectible Accounts 9,900 During 2017, its credit sales were $1,173,000 and collections on credit sales were $1,150,000. The following additional transactions occurred during the year: Feb. 17 Wrote off Nissim's account, $3,600. May 28 Wrote off White's account, $2,400. Dec. 15 Wrote off Ohlson's account, $900. Dec. 31 Recorded the provision for uncollectible accounts at 0.8% of credit sales for the year. (Hint: The allowance account is increased by 0.8% of credit sales regardless of any prior write-offs.) Compute and show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31, 2017, balance sheet. Do not use negative signs with your answers. Accounts receivable Less Allowance for uncollectible accounts Accounts receivable, net

At the beginning of 2017, Penman Company had the following (normal) account balances in its financial records: Accounts Receivable $127,000 Allowance for Uncollectible Accounts 9,900 During 2017, its credit sales were $1,173,000 and collections on credit sales were $1,150,000. The following additional transactions occurred during the year: Feb. 17 Wrote off Nissim's account, $3,600. May 28 Wrote off White's account, $2,400. Dec. 15 Wrote off Ohlson's account, $900. Dec. 31 Recorded the provision for uncollectible accounts at 0.8% of credit sales for the year. (Hint: The allowance account is increased by 0.8% of credit sales regardless of any prior write-offs.) Compute and show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31, 2017, balance sheet. Do not use negative signs with your answers. Accounts receivable Less Allowance for uncollectible accounts Accounts receivable, net

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1AP: Allowance Method for Accounting for Bad Debts At the beginning of 2016, Miyazaki Companys Accounts...

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