Accounts receivable transactions are provided below for J Sandhill Co. Dec. 31, 2023 Mar. 5, 2024 June 6, 2024 The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $620,000 and $2,400 (debit), respectively. The company determined that R. Mirza's $3,900 account and D. Wight's $7,700 account were uncollectible. The company's accounts receivable were $653,900 before the accounts were written off. Wight paid the amount that had been written off on March 5. The company's accounts receivable were $608,400 prior to recording the cash receipt for Wight.
Accounts receivable transactions are provided below for J Sandhill Co. Dec. 31, 2023 Mar. 5, 2024 June 6, 2024 The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $620,000 and $2,400 (debit), respectively. The company determined that R. Mirza's $3,900 account and D. Wight's $7,700 account were uncollectible. The company's accounts receivable were $653,900 before the accounts were written off. Wight paid the amount that had been written off on March 5. The company's accounts receivable were $608,400 prior to recording the cash receipt for Wight.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Accounts receivable transactions are provided below for J Sandhill Co.
Dec. 31, 2023
Mar. 5, 2024
June 6, 2024
The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the
Accounts Receivable account and Allowance for Doubtful Accounts were $620,000 and $2,400 (debit),
respectively.
The company determined that R. Mirza's $3,900 account and D. Wight's $7,700 account were uncollectible. The
company's accounts receivable were $653,900 before the accounts were written off.
Wight paid the amount that had been written off on March 5. The company's accounts receivable were $608,400
prior to recording the cash receipt for Wight.
Transcribed Image Text:Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry.
Date Explanation
Dec.
31, Balance unadjusted Debit
2023
Dec.
31, AJE
2023
Mar. 5,
2024
Mar. 5,
2024
June 6,
2024
Write off Mirza
Write off Wight
Reverse write off
Ref.
Allowance for Doubtful Accounts
Debit
MAT
Credit
Balance
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