Continuation from picture, the answers are all different, please help and answer a, b1 and ii4. Assume that the percentage of sales method was used instead by the company and that onDecember 31st, 2010 5% of 2010 ‘s credit sales are estimated to be uncollectible. AssumeSales for 2010 were 520,000 (60% relates to cash sales)You are now required to:a. Determine the amount to be charged to the uncollectible expense account.b. (1) Prepare the Allowance for uncollectible account for 2010, using this method(ii) Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31 2010 Slow Running Shoes uses the Aging of receivables method to account for uncollectibleaccounts.The balance in the Allowance for uncollectible account as at Jan 1st, 2010 was $10,500(credit)o The balance in the Accounts Receivable account as at Jan 1st, 2010 was $133,000.The company completed the following transactions during 2010 and 2011:2010Wrote off the balance of $600 from MannyMiller's account as uncollectibleRe-instated the account of Betty Lou andrecorded the collection of $1200 as paymentJune 10thSeptember 15thin full for her account which had been writtenoff earlierRecorded the uncollectible account expensebased on the aging schedule. The scheduleshowed that $14,100 of accounts receivablewas estimated as uncollectibleDecember 31stDecember 31stMade the closing entry for the uncollectibleexpense account2011Sold inventory to Jack Frost, $1100, onJan 17accountWrote off as uncollectible the accounts ofBarry Semper, $1,500; Maria Jesus $1,400and Rory Paul $200Received 40% of the amount owed by JackFrost and wrote off the remainder asAugust 15September 26uncollectibleReceived 20% of the funds owed from MariaJesus as part payment of her account whichhad been written off earlier as uncollectibleOctober 16The Aging schedule showed an estimated$7500 as uncollectibleDecember 31Required:1. Prepare journal entries for each transaction (No narrations required)2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based onthe information presented and balance off each account.3. Prepare the balance sheet extracts as at Dec 31 2010 & 2011 to show the net realizablevalue for the Accounts Receivable.

1. Allowance Method - Under allowance method company make provision of uncollectible accounts at the…

Answered: Continuation from picture, the answers…

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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Continuation from picture, the answers are all different, please help and answer a, b1 and ii
4. Assume that the percentage of sales method was used instead by the company and that on
December 31st, 2010 5% of 2010 ‘s credit sales are estimated to be uncollectible. Assume
Sales for 2010 were 520,000 (60% relates to cash sales)
You are now required to:
a. Determine the amount to be charged to the uncollectible expense account.
b. (1) Prepare the Allowance for uncollectible account for 2010, using this method
(ii) Prepare the balance sheet extract to show the net realizable value of the Accounts
Receivable as at December 31 2010

Slow Running Shoes uses the Aging of receivables method to account for uncollectible
accounts.
The balance in the Allowance for uncollectible account as at Jan 1st, 2010 was $10,500
(credit)
o The balance in the Accounts Receivable account as at Jan 1st, 2010 was $133,000.
The company completed the following transactions during 2010 and 2011:
2010
Wrote off the balance of $600 from Manny
Miller's account as uncollectible
Re-instated the account of Betty Lou and
recorded the collection of $1200 as payment
June 10th
September 15th
in full for her account which had been written
off earlier
Recorded the uncollectible account expense
based on the aging schedule. The schedule
showed that $14,100 of accounts receivable
was estimated as uncollectible
December 31st
December 31st
Made the closing entry for the uncollectible
expense account
2011
Sold inventory to Jack Frost, $1100, on
Jan 17
account
Wrote off as uncollectible the accounts of
Barry Semper, $1,500; Maria Jesus $1,400
and Rory Paul $200
Received 40% of the amount owed by Jack
Frost and wrote off the remainder as
August 15
September 26
uncollectible
Received 20% of the funds owed from Maria
Jesus as part payment of her account which
had been written off earlier as uncollectible
October 16
The Aging schedule showed an estimated
$7500 as uncollectible
December 31
Required:
1. Prepare journal entries for each transaction (No narrations required)
2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on
the information presented and balance off each account.
3. Prepare the balance sheet extracts as at Dec 31 2010 & 2011 to show the net realizable
value for the Accounts Receivable.

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