2020 transactions: 1. $300,000 of credit sales 2. $250,000 customer payments collected on credit sales 3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went into bankruptcy. 4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will be uncollectable. REQUIRED*** *** Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA. Please include your T Accounts in your PDF Upload. NO WORK = NO CREDIT Journals are not required, but could be helpful in solving the problem. ***REQUIRED*** answer the following as of Dec 31, 2020 Do not enter $ or Canvas will mark wrong. (I will fix later) A) Accounts Receivable balance is $ B) Allowance for Doubtful ACcounts (ADA balance is $ C) Bad Debt Exnense (BDE) balance is $
2020 transactions: 1. $300,000 of credit sales 2. $250,000 customer payments collected on credit sales 3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went into bankruptcy. 4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will be uncollectable. REQUIRED*** *** Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA. Please include your T Accounts in your PDF Upload. NO WORK = NO CREDIT Journals are not required, but could be helpful in solving the problem. ***REQUIRED*** answer the following as of Dec 31, 2020 Do not enter $ or Canvas will mark wrong. (I will fix later) A) Accounts Receivable balance is $ B) Allowance for Doubtful ACcounts (ADA balance is $ C) Bad Debt Exnense (BDE) balance is $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:ABC Company began operations in 2020. Review the transactions and determine the
amounts asked below.
2020 transactions:
1. $300,000 of credit sales
2. $250,000 customer payments collected on credit sales
3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went into
bankruptcy.
4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will be
uncollectable.
***
REQUIRED**
Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA.
Please include your T Accounts in your PDF Upload. NO WORK = NO CREDIT
Journals are not required, but could be helpful in solving the problem.
***REQUIRED*** answer the following as of Dec 31, 2020
Do not enter $ or Canvas will mark wrong. (I will fix later)
A) Accounts Receivable balance is $
B) Allowance for Doubtful ACcounts (ADA) balance is $
C) Bad Debt Expense (BDE) balance is $

Transcribed Image Text:Using the information from 2020 for ABC Company and procee
Update the TAccounts and answer the questions below. Label your entries with the
appropriate transaction letter.
Use the 2021 transactions:
5. $400,000 in credit sales
6. $375,000 payment received on credit sales (collected from AR customers)
7. Received $500 from the customer previously written off in #3 as a bankruptcy
settlement.
8. Wrote off a $1,500 receivable from NoCash Customer, who went into bankruptcy.
9. At 12/31/21 ABC, Inc estimated 4% of its ending AR will be uncollectable.
*** REQUIRED***
Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the
2021 transactions.
Include your TAccounts in your PDF upload.
***REQUIRED**** answer the following as of Dec 31, 2021
A) Accounts Receivable balance is $
B) Allowance for Doubtful Accounts (ADA) balance is $
C) Bad Debt Expense (BDE) balance is $
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