The Accounts Receivable control accountbalance of BLOOMS COMPANY wasP264,000 as of December 31, 2018. The subsidiary ledger accounts of theCompany are summarized below. Credit terms are 60 days net.BALANCE8,0004,0009,0006,00014,00011,00014,000ACCOUNT NO. DATECREDITDEBIT8,0001.May 31July 174,0005,0003,000Sept. 1258,000Nov. 13,000Dec. 103,00012,000Aug. 8Oct. 412,00012,000Nov. 25 25,00025,0003. (Three-month,8% note)Jan. 1 100,000Mar 31-100,0002,000 cr.102,000(Two month,9% note)Dec. 1100,00098,0004.Feb. 3 20,00020,00044,000Aug. 324,0005.Feb. 10 30,00030,000Apr. 9May 4July 2Sept. 6Nov. 2530,00040,00040,00040,00060,0008,00060,00068,0002. ACCOUNT NO. DATEJuly 17Aug.16Sept.30(open)Oct. 15DEBIT5,0004,00015,000CREDITBALANCE5,0009.00024,0006.15,00021,00015,0009,00018Dec. 206,0006,000The allowance for uncollectible accounts, before audit, has a credit balance ofP8,000. The Allowance for Uncollectible Accounts is to be adjusted to balancedetermined as follows:Accounts not dueAccounts 1-60 days past dueAccounts 61-120 days past dueAccounts over 120 days past due1 percent2 percent5 percent50 percentThe allowance for uncollectible accounts is to be based only on the trade accounts.Except where payments are earmarked, the oldest items are paid first.REQUIRED:(b) Show the necessary audit adjustments as at December 31, 2018.

Accounts Receivable Accounts receivable is considered to be one of the main working capital…

The allowance for uncollectible accounts is to be based only on the trade accounts. Except where payments are earmarked, the oldest items are paid first. REQUIRED: (b) Show the necessary audit adjustments as at December 31, 2018.

The allowance for uncollectible accounts is to be based only on the trade accounts. Except where payments are earmarked, the oldest items are paid first. REQUIRED: (b) Show the necessary audit adjustments as at December 31, 2018.

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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