Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit $26,100 14,700 Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals January 6 January 15 20 During January 2024, the following transactions occur. January 2 Provide services to customers for cash, $46,100. Provide services to customers on account, $83,400. 3,600 15,000 80,000 $139,400 32 500 $1,400 9,500 95,000 33,500 $139,400 Write off accounts receivable as uncollectible, $2,500. (Assume the company uses the allowanc method) Bac
Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit $26,100 14,700 Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals January 6 January 15 20 During January 2024, the following transactions occur. January 2 Provide services to customers for cash, $46,100. Provide services to customers on account, $83,400. 3,600 15,000 80,000 $139,400 32 500 $1,400 9,500 95,000 33,500 $139,400 Write off accounts receivable as uncollectible, $2,500. (Assume the company uses the allowanc method) Bac
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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.
Question
Transcribed Image Text:On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts
Credit
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Supplies
Notes Receivable (6%, due in 2 years)
Land
Accounts Payable
Common Stock
Retained Earnings
Totals
Debit
$26, 100
14,700
3,600
15,000
80,000
$139,400
$1,400
January 20
Pay cash for salaries, $32,500.
January 22
Receive cash on accounts receivable, $81,000.
January 25 Pay cash on accounts payable, $6,600.
January 38 Pay cash for utilities during January, $14,800.
9,500
95,000
33,500
$139,400
During January 2024, the following transactions occur:
January 2 Provide services to customers for cash, $46,100.
January 6 Provide services to customers on account, $83,400.
January 15 Write off accounts receivable as uncollectible, $2,500. (Assume the company uses the allowance
method)
Exercise 5-21 (Algo) Part 2
2. Record adjusting entries on January 31. (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
a. The company estimates future uncollectible accounts. The company determines $4,000 of accounts receivable on January 31 are
past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past
due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in
the general ledger to split total accounts receivable into the $4,000 past due and the remaining amount not past due.)
b. Supplies at the end of January total $800. All other supplies have been used.
c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
d. Unpaid salaries at the end of January are $34,600.
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