The general ledger of Pop's Fireworks includes the following account balances in 2024: Accounts Credit Cash Accounts Receivable. Allowance for Uncollectible Accounts Supplies Notes Receivable (8%, due in 2 years) Land Accounts Payable. Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals Debit $22,200 44,000 8,200 20,000 90,000 71,400 25,700 17,200 $298,700 $3,200 13,300 126,000 30,400 125,800 $298,700 In addition, the following transactions occurred during 2024 and are not yet reflected in the account balances above: June 3 June 8 Provide additional services on account for $12,000. All services on account include terms 2/10, n/30. Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $7,500. November 15 Write off customer accounts of $3,500 as uncollectible. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected. (Hint Use the January 31 accounts receivable balance calculated in the general ledger to determine the total estimate of uncollectible accounts. b. Accrue interest on the note receivable of $20,000, which was accepted on October 1, 2024, Interest is due each September 30.

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by t…

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable ari…