The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $9,000. November 15 Write off customer accounts of $2,300 as uncollectible. 2. Record the following adjusting entries on December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected. Accrue interest on the note receivable of $26,000, which was accepted on October 1, 2021. Interest is due each September 30.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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The general ledger of Pop's Fireworks includes the following account balances in 2021:

Accounts	Debit		Credit
Cash	$	22,800
Accounts Receivable		45,500
Allowance for Uncollectible Accounts				$	3,800
Supplies		9,100
Notes Receivable (8%, due in 2 years)		26,000
Land		93,000
Accounts Payable					13,900
Common Stock					138,000
Retained Earnings					30,700
Service Revenue					126,400
Salaries Expense		71,700
Utilities Expense		26,600
Supplies Expense		18,100
Totals	$	312,800		$	312,800

In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above:

June	3	Provide additional services on account for $15,000. All services on account include terms 2/10, n/30.
June	8	Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $9,000.
November	15	Write off customer accounts of $2,300 as uncollectible.

2. Record the following adjusting entries on December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected.
Accrue interest on the note receivable of $26,000, which was accepted on October 1, 2021. Interest is due each September 30.

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