5-6A - Recording receivables transactions On November 1, 2024, Recchi Company showed the following account balances: Account Accounts receivable Allowance for doubtful accounts During the next fiscal year, the following events occurred: a.) Consulting revenues for the year were $425,000. 95% were on account, 5% were cash sales. Collections for the year were $375,000. $5,000 was added to the total accounts receivable due to interest on overdue accounts. Writeoffs of uncollectible accounts totaled $3,500. One of the accounts written off in part d.) was collected: $750. On October 31, 2025 (the company's fiscal-year end), using the aging-of-receivables method, the allowance for doubtful accounts was estimated to be $3,500. b.) c.) d.) e.) f.) Required: a.) b.) Debit $35,000 Credit $2,000 Record journal entries based on the summary events above. Show how net receivables will be presented on the October 31, 2025 balance sheet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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5-6A - Recording receivables transactions
On November 1, 2024, Recchi Company showed the following account balances:
Account
Accounts receivable
Allowance for doubtful accounts
During the next fiscal year, the following events occurred:
a.)
b.)
c.)
d.)
e.)
f.)
Required:
a.)
b.)
Debit
$35,000
Credit
$2,000
Consulting revenues for the year were $425,000. 95% were on account, 5% were
cash sales.
Collections for the year were $375,000.
$5,000 was added to the total accounts receivable due to interest on overdue accounts.
Writeoffs of uncollectible accounts totaled $3,500.
One of the accounts written off in part d.) was collected: $750.
On October 31, 2025 (the company's fiscal-year end), using the aging-of-receivables
method, the allowance for doubtful accounts was estimated to be $3,500.
Record journal entries based on the summary events above.
Show how net receivables will be presented on the October 31, 2025 balance sheet.
Transcribed Image Text:5-6A - Recording receivables transactions On November 1, 2024, Recchi Company showed the following account balances: Account Accounts receivable Allowance for doubtful accounts During the next fiscal year, the following events occurred: a.) b.) c.) d.) e.) f.) Required: a.) b.) Debit $35,000 Credit $2,000 Consulting revenues for the year were $425,000. 95% were on account, 5% were cash sales. Collections for the year were $375,000. $5,000 was added to the total accounts receivable due to interest on overdue accounts. Writeoffs of uncollectible accounts totaled $3,500. One of the accounts written off in part d.) was collected: $750. On October 31, 2025 (the company's fiscal-year end), using the aging-of-receivables method, the allowance for doubtful accounts was estimated to be $3,500. Record journal entries based on the summary events above. Show how net receivables will be presented on the October 31, 2025 balance sheet.
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