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: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd 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 July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 The accounts receivable account had a balance of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: Prepare journal entries for each transaction. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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:

January 15	Wrote of $440 account of Miller Company as uncollectible
April 2^nd	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
July 31	Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible
August 15	Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200
September 26	Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible
October 16	Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible
December 31	Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000

The accounts receivable account had a balance of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200.

Required:

Prepare journal entries for each transaction.
Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account.
Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable.

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions