DateParticularsDebitCredit10 JanAccounts receivable11,000 Revenue 11,000 15 MayAllowance for uncollectible account2,900 Accounts receivable 2,900 4 AugCash7,700 Allowance for uncollectible amount3,300 Accounts Receivable 11,000 26 OctAccounts Receivable120 Allowance for uncollectible account 120 26 Oct Cash120 Accounts receivable 120 31 Dec Bad Debt 91380 Allowance for uncollectible accounts 91380Allowance for uncollective AccountsDateParticularsAmountDateParticularsAmount15 May Accounts Receivable2,9001 Jan Balance b/d31,2004 AugAccounts Receivable3,30026 Oct Account Receivable12031 DecBalance c/d116,50031 DecBad Debt91,380 Balance c/d116,500 Total122,700 Total122,7 Accounts receivableDateParticularsAmountDateParticularsAmount1 JanTo Balance b/d312,00015 Maybut allowance for uncollectible2,90010 Jan to sales Revenue11,0004 Augustby allowance for uncollectible3,30026 OctTo Allowance for uncollectible account12026 Octby cash120 31 Decby balance c/d316,800 Total122,700 Total122,700 Current Assets: Total Receivable316,800Less: Allowance for uncollectible116,500Net Trade receivable200,300Requirement:1. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable valuefor the Accounts Receivable.2. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of creditsales are estimated to be uncollectible. Using the percentage of sales method:i. Determine the amount to be charged to the uncollectible expenseaccount.ii. Prepare the Allowance for uncollectible account.iii. Prepare the balance sheet extract to show the net realizable value ofthe Accounts Receivable as at December 31.

Journal entries are the initial recording of all the monetary business transactions in a…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Date	Particulars	Debit	Credit
10 Jan	Accounts receivable	11,000
	Revenue		11,000

15 May	Allowance for uncollectible account	2,900
	Accounts receivable		2,900

4 Aug	Cash	7,700
	Allowance for uncollectible amount	3,300
	Accounts Receivable		11,000

26 Oct	Accounts Receivable	120
	Allowance for uncollectible account		120

26 Oct	Cash	120
	Accounts receivable		120

31 Dec	Bad Debt	91380
	Allowance for uncollectible accounts		91380

Allowance for uncollective Accounts

Date	Particulars	Amount	Date	Particulars	Amount
15 May	Accounts Receivable	2,900	1 Jan	Balance b/d	31,200
4 Aug	Accounts Receivable	3,300	26 Oct	Account Receivable	120
31 Dec	Balance c/d	116,500	31 Dec	Bad Debt	91,380
				Balance c/d	116,500
	Total	122,700		Total	122,7

Accounts receivable

Date	Particulars	Amount	Date	Particulars	Amount
1 Jan	To Balance b/d	312,000	15 May	but allowance for uncollectible	2,900
10 Jan	to sales Revenue	11,000	4 August	by allowance for uncollectible	3,300
26 Oct	To Allowance for uncollectible account	120	26 Oct	by cash	120
			31 Dec	by balance c/d	316,800
	Total	122,700		Total	122,700

Current Assets:
Total Receivable	316,800
Less: Allowance for uncollectible	116,500
Net Trade receivable	200,300

Requirement:

1. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value
for the Accounts Receivable.

2. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit
sales are estimated to be uncollectible. Using the percentage of sales method:
i. Determine the amount to be charged to the uncollectible expense
account.
ii. Prepare the Allowance for uncollectible account.
iii. Prepare the balance sheet extract to show the net realizable value of
the Accounts Receivable as at December 31.

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