The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $9,000. November 15 Write off customer accounts of $2,300 as uncollectible. 7. Analyze the following information: By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021? What is the ending balance of Allowance for Uncollectible Accounts? What amount of cash is expected to be collected from accounts receivable? a. Bad Debt Expense b. Ending Balance of Allowance for Uncollectible Accounts c. Amount expected to be collected

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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The general ledger of Pop's Fireworks includes the following account balances in 2021:

Accounts	Debit		Credit
Cash	$	22,800
Accounts Receivable		45,500
Allowance for Uncollectible Accounts				$	3,800
Supplies		9,100
Notes Receivable (8%, due in 2 years)		26,000
Land		93,000
Accounts Payable					13,900
Common Stock					138,000
Retained Earnings					30,700
Service Revenue					126,400
Salaries Expense		71,700
Utilities Expense		26,600
Supplies Expense		18,100
Totals	$	312,800		$	312,800

In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above:

June	3	Provide additional services on account for $15,000. All services on account include terms 2/10, n/30.
June	8	Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $9,000.
November	15	Write off customer accounts of $2,300 as uncollectible.

7. Analyze the following information:

By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021?
What is the ending balance of Allowance for Uncollectible Accounts?
What amount of cash is expected to be collected from accounts receivable?
a. Bad Debt Expense

b. Ending Balance of Allowance for Uncollectible Accounts

c. Amount expected to be collected

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