Pronghorn Corp.’s balance sheet at December 31, 2016, included the following. Note receivable $600,000 Interest receivable 34,000 Accounts receivable 1,385,000 Less: Allowance for doubtful accounts receivable 90,000 1,295,000 $1,929,000 The following occurred in 2017. 1. Pronghorn made sales of $10,680,000. All sales were credit sales. Pronghorn allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $83,750 were written off during the year. 3. Accounts receivable of $10,780,000 were collected. Collections for the year included $200,000 of accounts on which 2% sales discounts were allowed. 4. $10,500 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Pronghorn estimated that its Allowance for Doubtful Accounts needed a balance of $72,000. This estimate is based on an analysis of aged accounts receivable. 6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date. Prepare all journal entries necessary to reflect the transactions above.
Pronghorn Corp.’s balance sheet at December 31, 2016, included the following. Note receivable $600,000 Interest receivable 34,000 Accounts receivable 1,385,000 Less: Allowance for doubtful accounts receivable 90,000 1,295,000 $1,929,000 The following occurred in 2017. 1. Pronghorn made sales of $10,680,000. All sales were credit sales. Pronghorn allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $83,750 were written off during the year. 3. Accounts receivable of $10,780,000 were collected. Collections for the year included $200,000 of accounts on which 2% sales discounts were allowed. 4. $10,500 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Pronghorn estimated that its Allowance for Doubtful Accounts needed a balance of $72,000. This estimate is based on an analysis of aged accounts receivable. 6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date. Prepare all journal entries necessary to reflect the transactions above.
Pronghorn Corp.’s balance sheet at December 31, 2016, included the following. Note receivable $600,000 Interest receivable 34,000 Accounts receivable 1,385,000 Less: Allowance for doubtful accounts receivable 90,000 1,295,000 $1,929,000 The following occurred in 2017. 1. Pronghorn made sales of $10,680,000. All sales were credit sales. Pronghorn allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $83,750 were written off during the year. 3. Accounts receivable of $10,780,000 were collected. Collections for the year included $200,000 of accounts on which 2% sales discounts were allowed. 4. $10,500 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Pronghorn estimated that its Allowance for Doubtful Accounts needed a balance of $72,000. This estimate is based on an analysis of aged accounts receivable. 6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date. Prepare all journal entries necessary to reflect the transactions above.
Pronghorn Corp.’s balance sheet at December 31, 2016, included the following.
Note receivable
$600,000
Interest receivable
34,000
Accounts receivable
1,385,000
Less: Allowance for doubtful accounts receivable
90,000
1,295,000
$1,929,000
The following occurred in 2017.
1.
Pronghorn made sales of $10,680,000. All sales were credit sales. Pronghorn allows some discounts for early payment of receivables and uses the gross method to record sales.
2.
Customer accounts of $83,750 were written off during the year.
3.
Accounts receivable of $10,780,000 were collected. Collections for the year included $200,000 of accounts on which 2% sales discounts were allowed.
4.
$10,500 was received in payment of an account which was written off the books as worthless in 2016.
5.
At year-end (December 31, 2017), Pronghorn estimated that its Allowance for Doubtful Accounts needed a balance of $72,000. This estimate is based on an analysis of aged accounts receivable.
6.
The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date.
Prepare all journal entries necessary to reflect the transactions above.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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