At January 1, 2024, Covington Inc. reported the following information on its statement of financial position Accounts receivable Allowance for expected credit losses During 2024, the company had the following summary transactions for receivables: Sales on account, $1,680,000; cost of goods sold, $1,008,000; return rate of 5% Selling price of goods returned, $96,000; cost of goods returned to inventory. $57,600 Collections of accounts receivable, $1,500,000 Write-offs of accounts receivable deemed uncollectible, $47,000 Collection of accounts previously written off as uncollectible, $13,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000 1. 2. 3. 4. 5. 6. Prepare T accounts for Accounts Receivable and Allowance for Expected Credit Losses, (2) enter the opening balances, (3) p e above summary entries, and (4) determine the ending balances. (Post entries in the order of journal entries presented in the evious part.) Bal. (1) (5) Bal v Accounts Receivable 500,000 $500,000 44,000 1680000 13000 47000 (2) (3) (4) (5) Allowance for Expected Credit Losses Bal (5) 96000 1500000 47000 13000 1656000 44000 13000

At January 1, 2024, Covington Inc. reported the following information on its statement of financial position Accounts receivable Allowance for expected credit losses During 2024, the company had the following summary transactions for receivables: Sales on account, $1,680,000; cost of goods sold, $1,008,000; return rate of 5% Selling price of goods returned, $96,000; cost of goods returned to inventory. $57,600 Collections of accounts receivable, $1,500,000 Write-offs of accounts receivable deemed uncollectible, $47,000 Collection of accounts previously written off as uncollectible, $13,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000 1. 2. 3. 4. 5. 6. Prepare T accounts for Accounts Receivable and Allowance for Expected Credit Losses, (2) enter the opening balances, (3) p e above summary entries, and (4) determine the ending balances. (Post entries in the order of journal entries presented in the evious part.) Bal. (1) (5) Bal v Accounts Receivable 500,000 $500,000 44,000 1680000 13000 47000 (2) (3) (4) (5) Allowance for Expected Credit Losses Bal (5) 96000 1500000 47000 13000 1656000 44000 13000

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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