1.The 2017 year-end balances of Accounts Receivable and Allowance for Doubtful Accounts are $1,000,000 and $100,000, respectively. Complete the net realizable value (net accounts receivable) presentation at 12/31/2017. Do not use decimals. account receivable ? less: allowance for doubtful accounts? net reallizable value? 2.Prepare the journal entry to record 2018 total sales: $3,000,000, of which $2,200,000 are on account. Do not use decimals. [Note: enter cash sales in the first line.] 3.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record 2018 sales. Do not use decimals. 4.Prepare the journal entry to record $2,700,000 of accounts receivable collected in 2018. Do not use decimals. 5.Compute the net realizable value (net accounts receivable) presentation after the two journal entries to record 2018 sales and 2018 collections. Do not use decimals. 6.Prepare the journal entry to record $25,000 of write-offs in 2018. Do not use decimals. 7.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record writeoffs. Do not use decimals. 8.Prepare the journal entry to reinstate $6,000 of the $25,000 that was written off in 2018. Do not use decimals. 9.Compute the net realizable value (net accounts receivable) presentation after the journal entry to reinstate previously written off accounts receivable has been recorded. Do not use decimals. 10.Prepare the journal entry to collect the reinstated amount in 2018. Do not use decimals. 11.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record the collection of the reinstated amount. Do not use decimals. 12.Prepare the 2018 adjusting journal entry at year-end to record bad debt expense estimated at 20% of accounts receivable. Do not use decimals. 13.Compute the net realizable value (net accounts receivable) presentation at 12/31/18 after the adjusting journal entry to record bad debt expense. Do not use decimals. 14.You have now recorded a series of transactions affecting accounts receivable for a whole year (2018). Refer back to the various net realizable value (NRV) calculations you made at various points during the year. Note: these are transactions that change NRV, so you should be reporting different amounts for each of these items What was the NRV at the beginning of the year (or at 12/31/17)? What was the NRV after 2018 sales? What was the NRV after 2018 collections? Lastly, what was the NRV after the reinstated amount was collected in 2018? 15.You have now recorded a series of transactions affecting accounts receivable for a whole year (2018). Refer back to the various net realizable value (NRV) calculations you made at various points during the year. Note: these are transactions that do not change NRV, so you should be reporting the same amount for each of these items. What was the NRV after 2018 collections? What was the NRV after 2018 writeoffs? What was the NRV after 2018 reinstatements?
Bad Debts
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.
1.The 2017 year-end balances of
account receivable ?
less: allowance for doubtful accounts?
net reallizable value?
2.Prepare the
3.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record 2018 sales. Do not use decimals.
4.Prepare the journal entry to record $2,700,000 of accounts receivable collected in 2018. Do not use decimals.
5.Compute the net realizable value (net accounts receivable) presentation after the two journal entries to record 2018 sales and 2018 collections. Do not use decimals.
6.Prepare the journal entry to record $25,000 of write-offs in 2018. Do not use decimals.
7.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record writeoffs. Do not use decimals.
8.Prepare the journal entry to reinstate $6,000 of the $25,000 that was written off in 2018. Do not use decimals.
9.Compute the net realizable value (net accounts receivable) presentation after the journal entry to reinstate previously written off accounts receivable has been recorded. Do not use decimals.
10.Prepare the journal entry to collect the reinstated amount in 2018. Do not use decimals.
11.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record the collection of the reinstated amount. Do not use decimals.
12.Prepare the 2018
13.Compute the net realizable value (net accounts receivable) presentation at 12/31/18 after the adjusting journal entry to record bad debt expense. Do not use decimals.
14.You have now recorded a series of transactions affecting accounts receivable for a whole year (2018). Refer back to the various net realizable value (NRV) calculations you made at various points during the year. Note: these are transactions that change NRV, so you should be reporting different amounts for each of these items
What was the NRV at the beginning of the year (or at 12/31/17)?
What was the NRV after 2018 sales?
What was the NRV after 2018 collections?
Lastly, what was the NRV after the reinstated amount was collected in 2018?
15.You have now recorded a series of transactions affecting accounts receivable for a whole year (2018). Refer back to the various net realizable value (NRV) calculations you made at various points during the year. Note: these are transactions that do not change NRV, so you should be reporting the same amount for each of these items.
What was the NRV after 2018 collections?
What was the NRV after 2018 writeoffs?
| What was the NRV after 2018 reinstatements? |
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