. Accounts receivable from customers $890,000 Less: Allowance for doubtful accounts 20,000 5 . The December 31 Balance Sheet of Twin Peaks Inc includes the following for the company's receivables: Required: Record the following events in the form of general journal entries: a. $11,800 in accounts receivable were written off as uncollectible. b. $1,400 of accounts written off was unexpectedly collected in full (use 2 entries to record these events). c. An aging of accounts receivable at January 31 indicated the need for a $22,000 allowance for doubtful accounts. You should consider also the above to calculate the balance of the Allowance a/c)
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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 the company during that accounting period.
Accounts Receivable
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 arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The December 31
receivables:
Less: Allowance for doubtful accounts 20,000
Required:
Record the following events in the form of general journal entries:
a. $11,800 in accounts receivable were written off as uncollectible.
b. $1,400 of accounts written off was unexpectedly collected in full (use 2 entries to
record these events).
c. An aging of accounts receivable at January 31 indicated the need for a $22,000
allowance for doubtful accounts. You should consider also the above to calculate the
balance of the Allowance a/c)
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