**Accounts Receivable and Allowance for Doubtful Accounts Analysis**At the beginning of the current period, Tamarisk, Inc. recorded an Accounts Receivable balance of $220,000 and an Allowance for Doubtful Accounts balance of $9,900. During this period, the company experienced the following financial activities:- Net credit sales amounted to $880,000.- Collections on these accounts totaled $839,300.- Uncollectible accounts amounting to $8,030 were written off.- It is estimated that uncollectible accounts will total $27,500 by the end of the period.(Note: The cost of goods sold is not included in this analysis.)### Tasks:**(a)** Record sales and collections during the period. **(b)** Record the write-off of uncollectible accounts during the period. **(c)** Record the bad debt expense for the period.**Instructions:**Begin by entering the starting balances for Accounts Receivable and Allowance for Doubtful Accounts in a table. Use this table to summarize and record the transactions outlined in steps (a), (b), and (c).*(Note: Indicate negative amounts with a negative sign before the number, e.g., -45, or by using parentheses, e.g., (45).)*

Accounts Receivable- It is the amount which has not been received by the company from its customers on account of credit sales. Bad debts - It is the amount of accounts receivable which are proved to be uncollectable.

Business

Accounting

At the beginning of the current period, Tamarisk, Inc. had balances in Accounts Receivable of $220,000 and in Allowance for Doubtful Accounts of $9,900. During the period, it had net credit sales of $880,000 and collections of $839,300. It wrote off as uncollectible accounts receivable of $8,030. Uncollectible accounts are estimated to total $27,500 at the end of the period. (Omit recording cost of goods sold.)

At the beginning of the current period, Tamarisk, Inc. had balances in Accounts Receivable of $220,000 and in Allowance for Doubtful Accounts of $9,900. During the period, it had net credit sales of $880,000 and collections of $839,300. It wrote off as uncollectible accounts receivable of $8,030. Uncollectible accounts are estimated to total $27,500 at the end of the period. (Omit recording cost of goods sold.)

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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Sipacore Ltd. has an Accounts Receivable amount of $363,700 and an unadjusted credit balance in Allowance for Expected Credit Losses of $8,600 at March 31. The company's accounts receivable and percentage estimates of uncollectible accounts are as follows: Number of Days Outstanding 0-30 (a) 31-60 61-90 Over 90 Total Your answer is correct. Age of Accounts 0-30 days 31-60 days Accounts Receivable $258,000 45,800 32,600 27,300 $363,700 61-90 days Over 90 days Prepare an aging schedule to determine the total estimated uncollectibles at March 31. Amount % $258,000 2% 45,800 10% 32,600 30% Estimated Percentage Uncollectible 27,300 50% 2% 10% 30% 50% Estimated Uncollectible 5160 4580 9780 13650 33170
Presented below is information for Flint Company: Beginning of the year accounts receivable balance was $23,600. Net sales (all on account) for the year were $103,100. Flint Company does not offer cash discounts. Collections on accounts receivable during the year were $90,300. Flint Company is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors Inc. with recourse. Credit Factors will retain 7% of the balances for probable adjustments and assess a finance charge of 6%. The fair value of the recourse obligation is $1,021. Prepare the journal entry to record the sale of the receivables Compute Flint’s accounts receivable turnover for the year, assuming the receivables are sold.
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