January 15 Wrote of $440 account of Miller Company as uncollectible Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier April 2nd Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible July 31 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible August 15 September 26 October 16
January 15 Wrote of $440 account of Miller Company as uncollectible Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier April 2nd Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible July 31 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible August 15 September 26 October 16
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I don't understand how to go about doing these questions. Could you provide a narrative on how you get your answers please. With explanations. Thank you
![Accounting for Assets: Receivables
LET’S
DISCUSS
Johnson company's financial year ended on December 31, 2010. All the
transactions related to the company's uncollectible accounts are can be found
below:
Wrote of $440 account of Miller Company as
uncollectible
Re-establish the account of Louisa Teller and
record the collection of $1,050 as payment in
full for her account which had been written
off earlier
January 15
April 2nd
Received 40% of the $700 balance owed by
William John and wrote off the remainder as
uncollectible
July 31
Wrote off as uncollectible the accounts of
Sherwin Company, $1,700 and V. Vasell
$2,200
Received 25% of the $1,140 owed by Grant
Company and wrote off the remainder as
uncollectible
August 15
September 26
Received $741 from M. Fuller in full payment
of his account which had been written off
earlier as uncollectible
Estimated uncollectible accounts expense for
the year to be 1.5% of net credit sales of
$521,000
October 16
December 31
The accounts receivable account had a balance of $114,630 and the beginning balance in the
allowance for uncollectible accounts was $6,200.
Required:
1. Prepare journal entries for each transaction.
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 extract as at Dec 31 to show the net realizable value for the
Accounts Receivable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a3f2e7d-5cb8-4afa-9389-12614fdb6539%2F86923501-d441-4552-9123-9e859f58e9c3%2Fymokbcf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Accounting for Assets: Receivables
LET’S
DISCUSS
Johnson company's financial year ended on December 31, 2010. All the
transactions related to the company's uncollectible accounts are can be found
below:
Wrote of $440 account of Miller Company as
uncollectible
Re-establish the account of Louisa Teller and
record the collection of $1,050 as payment in
full for her account which had been written
off earlier
January 15
April 2nd
Received 40% of the $700 balance owed by
William John and wrote off the remainder as
uncollectible
July 31
Wrote off as uncollectible the accounts of
Sherwin Company, $1,700 and V. Vasell
$2,200
Received 25% of the $1,140 owed by Grant
Company and wrote off the remainder as
uncollectible
August 15
September 26
Received $741 from M. Fuller in full payment
of his account which had been written off
earlier as uncollectible
Estimated uncollectible accounts expense for
the year to be 1.5% of net credit sales of
$521,000
October 16
December 31
The accounts receivable account had a balance of $114,630 and the beginning balance in the
allowance for uncollectible accounts was $6,200.
Required:
1. Prepare journal entries for each transaction.
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 extract as at Dec 31 to show the net realizable value for the
Accounts Receivable.
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