During the year, New York Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule. Age of Accounts Accounts Rececivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $49,000 $238,000 Estimated percent uncollectible $144,000 0.2% $17,000 $28,000 2% 15% 35% During the last quarter of 2019, the company completed the following selected transactions: Nov 30 Wrote off as uncollectible the $1,300 account receivable from Clupper Carpets and the $500 account receivable from Medina Antiques. Dec 31 Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the aging of receivables. Record the transactions for the last quarter of 2019 in the joumal. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account. Show how New York Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company's Accounts Receivable balance was $212,000, and the Allowance for Uncollectible Accounts stood at $4,300.
During the year, New York Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule. Age of Accounts Accounts Rececivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $49,000 $238,000 Estimated percent uncollectible $144,000 0.2% $17,000 $28,000 2% 15% 35% During the last quarter of 2019, the company completed the following selected transactions: Nov 30 Wrote off as uncollectible the $1,300 account receivable from Clupper Carpets and the $500 account receivable from Medina Antiques. Dec 31 Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the aging of receivables. Record the transactions for the last quarter of 2019 in the joumal. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account. Show how New York Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company's Accounts Receivable balance was $212,000, and the Allowance for Uncollectible Accounts stood at $4,300.
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.
Question
Transcribed Image Text:During the year, New York Communications estimates Uncollectible-account expense at
1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the
balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule.
Age of Accounts
Accounts Rececivable
1-30 Days
31-60 Days
61-90 Days
Over 90 Days
$49,000
$238,000
Estimated percent uncollectible
$144,000
0.2%
$17,000
$28,000
2%
15%
35%
During the last quarter of 2019, the company completed the following selected transactions:
Nov 30 Wrote off as uncollectible the $1,300 account receivable from
Clupper Carpets and the $500 account receivable from Medina Antiques.
Dec 31 Adjusted the Allowance for Uncollectible Accounts and recorded
uncollectible-account expense at year-end, based on the
aging of receivables.
Record the transactions for the last quarter of 2019 in the joumal. Explanations are not required.
Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate
beginning balance. Post the entries from requirement 1 to that account.
Show how New York Communications will report its accounts receivable in a comparative
balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31,
2018, the company's Accounts Receivable balance was $212,000, and the Allowance for
Uncollectible Accounts stood at $4,300.
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