Homework Help is Here – Start Your Trial Now!
Business
Accounting
The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) 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, 2020, to show the net realizable value for the Accounts Receivable.

The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) 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, 2020, to show the net realizable value for the Accounts Receivable.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Part B

The company completed the following transactions during 2020.

  • Jan 10 sold inventory to Natty Paul, $11,000, on account
  • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400
  • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible
  • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible.
  • December 31, The Aging schedule showed an estimated $116,500 as uncollectible

Requirements:

  1. Prepare journal entries for each transaction (No narrations required)
  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, 2020, to show the net realizable value for the Accounts Receivable.
Balance sheet (extract) Assets Accounts receivables 2,799,000 Less: allowance for uncollectible accounts (124,500) Net account receivables 2,674,500
Transcribed Image Text:Balance sheet (extract) Assets Accounts receivables 2,799,000 Less: allowance for uncollectible accounts (124,500) Net account receivables 2,674,500
T-accounts Allowance for uncollectible accounts Accounts receivables 1,000 Balance b/d 88,800 Balance c/d 124,500 Accounts receivables 1,500 Bad debt expense 35,200 125,500 125,500 Accounts receivables Allowance for uncollectible Balance b/d 2,800,000 1,000 accounts Allowance for uncollectible 1,500 Cash 1,500 accounts Balance c/d 2,799,000 2,801,500 2,801,500
Transcribed Image Text:T-accounts Allowance for uncollectible accounts Accounts receivables 1,000 Balance b/d 88,800 Balance c/d 124,500 Accounts receivables 1,500 Bad debt expense 35,200 125,500 125,500 Accounts receivables Allowance for uncollectible Balance b/d 2,800,000 1,000 accounts Allowance for uncollectible 1,500 Cash 1,500 accounts Balance c/d 2,799,000 2,801,500 2,801,500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS