Please to do the Journal and the balance sheet and the allowance for uncollectable Accounting for Assets: ReceivablesLET’SDISCUSSJohnson company's financial year ended on December 31, 2010. All thetransactions related to the company's uncollectible accounts are can be foundbelow:Wrote of $440 account of Miller Company asuncollectibleRe-establish the account of Louisa Teller andrecord the collection of $1,050 as payment infull for her account which had been writtenoff earlierReceived 40% of the $700 balance owed byWilliam John and wrote off the remainder asuncollectibleWrote off as uncollectible the accounts ofSherwin Company, $1,700 and V. Vasell$2,200Received 25% of the $1,140 owed by GrantCompany and wrote off the remainder asuncollectibleJanuary 15April 2ndJuly 31August 15September 26Received $741 from M. Fuller in full paymentof his account which had been written offearlier as uncollectibleEstimated uncollectible accounts expense forthe year to be 1.5% of net credit sales of$521,000October 16December 31The accounts receivable account had a balance of $114,630 and the beginning balance in theallowance 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 theinformation presented and balance off each account.3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for theAccounts Receivable.

Bad debt expense is the expense which is acknowledged when the receivable is no longer collectible…

Answered: Johnson company's financial year ended…

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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Please to do the Journal and the balance sheet and the allowance for uncollectable

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
Received 40% of the $700 balance owed by
William John and wrote off the remainder as
uncollectible
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
January 15
April 2nd
July 31
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.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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