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(d) The company collects $4,500 of the $18,000 of accounts that was determined to be uncollectible in part (c). The company the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future. (e) Explain how using the allowance method matches expenses with revenues. (f) Explain how using the allowance method values Accounts Receivable at net realizable value on the balance sheet. also expects to collect an additional $1,000. Record the journal entry (or entries) to restore

(d) The company collects $4,500 of the $18,000 of accounts that was determined to be uncollectible in part (c). The company the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future. (e) Explain how using the allowance method matches expenses with revenues. (f) Explain how using the allowance method values Accounts Receivable at net realizable value on the balance sheet. also expects to collect an additional $1,000. Record the journal entry (or entries) to restore

FINANCIAL ACCOUNTING
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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Can I get help with d,e and F please

P8-5A Pearson Company uses the allowance method to estimate uncollectible accounts receivable. The company produced the following information from aging its accounts receivable at year end: Number of Days Outstanding 31-60 Total 0-30 61-90 91-120 Accounts receivable Estimated % uncollectible Estimated uncollectible $640,000 $360,000 2% $140,000 S100,000 10% $40,000 30% 5% accounts The unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,000. Instructions (a) Complete the aging schedule and calculate the total estimated uncollectible accounts. (b) Record the bad debt adjusting entry using the information determined in part (a). (c) In the following year, $18,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts. (d) The company collects $4,500 of the $18.0X0 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1.000. Record the journal entry (or entries) to restore the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future. (e) Explain how using the allowance method matches expenses with revenues. (f) Explain how using the allowance method values Accounts Receivable at net realizable value on the balance sheet.
Transcribed Image Text:P8-5A Pearson Company uses the allowance method to estimate uncollectible accounts receivable. The company produced the following information from aging its accounts receivable at year end: Number of Days Outstanding 31-60 Total 0-30 61-90 91-120 Accounts receivable Estimated % uncollectible Estimated uncollectible $640,000 $360,000 2% $140,000 S100,000 10% $40,000 30% 5% accounts The unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,000. Instructions (a) Complete the aging schedule and calculate the total estimated uncollectible accounts. (b) Record the bad debt adjusting entry using the information determined in part (a). (c) In the following year, $18,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts. (d) The company collects $4,500 of the $18.0X0 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1.000. Record the journal entry (or entries) to restore the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future. (e) Explain how using the allowance method matches expenses with revenues. (f) Explain how using the allowance method values Accounts Receivable at net realizable value on the balance sheet.
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