(Learning Objectives 4, 5: Account for accounts receivable and uncollectible receivables) On November 30, Palmer Party Planners had a $41,000 balance in Accounts Receivableand a $3,584 credit balance in Allowance for Uncollectible Accounts. During December, Palmermade credit sales of $200,000. December collections on account were $168,000, and write-offsof uncollectible receivables totaled $2,910. Uncollectible-account expense is estimated as 1% ofcredit sales. No sales returns are expected. Ignore cost of goods sold.Requirements1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-accountexpense by the allowance method during December. Explanations are not required.2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts,and Net Accounts Receivable at December 31. How much does Palmer expect to collect?3. Show how Palmer Party Planners will report Accounts Receivable and net sales on itsDecember 31 balance sheet and income statement for the month ended December 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(Learning Objectives 4, 5: Account for accounts receivable and uncollectible receivables) On November 30, Palmer Party Planners had a $41,000 balance in Accounts Receivable
and a $3,584 credit balance in Allowance for Uncollectible Accounts. During December, Palmer
made credit sales of $200,000. December collections on account were $168,000, and write-offs
of uncollectible receivables totaled $2,910. Uncollectible-account expense is estimated as 1% of
credit sales. No sales returns are expected. Ignore cost of goods sold.
Requirements
1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account
expense by the allowance method during December. Explanations are not required.
2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts,
and Net Accounts Receivable at December 31. How much does Palmer expect to collect?
3. Show how Palmer Party Planners will report Accounts Receivable and net sales on its
December 31 balance sheet and income statement for the month ended December 31.

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