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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: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.

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: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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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 journal entries for each transaction (No narrations required)
  2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account.
  3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.
Balance sheet (extract) Assets Accounts receivables 2,799,000 Less: allowance for uncollectible accounts (124,500) Net account receivables 2,674,500
Transcribed Image Text:Balance sheet (extract) Assets Accounts receivables 2,799,000 Less: allowance for uncollectible accounts (124,500) Net account receivables 2,674,500
T-accounts Allowance for uncollectible accounts Accounts receivables 1,000 Balance b/d 88,800 Balance c/d 124,500 Accounts receivables 1,500 Bad debt expense 35,200 125,500 125,500 Accounts receivables Allowance for uncollectible Balance b/d 2,800,000 1,000 accounts Allowance for uncollectible 1,500 Cash 1,500 accounts Balance c/d 2,799,000 2,801,500 2,801,500
Transcribed Image Text:T-accounts Allowance for uncollectible accounts Accounts receivables 1,000 Balance b/d 88,800 Balance c/d 124,500 Accounts receivables 1,500 Bad debt expense 35,200 125,500 125,500 Accounts receivables Allowance for uncollectible Balance b/d 2,800,000 1,000 accounts Allowance for uncollectible 1,500 Cash 1,500 accounts Balance c/d 2,799,000 2,801,500 2,801,500
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