FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Part B
The company completed the following transactions during 2020.
• Jan 10 sold inventory to Natty Paul, $11,000, on account
• May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400
• August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible
• October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible.
• December 31, The Aging schedule showed an estimated $116,500 as uncollectible
Requirements:
1. Prepare
2. Prepare the Allowance for Uncollectible and the
3. Prepare the
4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit
sales are estimated to be uncollectible. Using the percentage of sales method:
Determine the amount to be charged to the uncollectible expense account.
Prepare the Allowance for uncollectible account.
Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31.
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