Upham Company’s June 30, 2019, balance sheet included the following information: Upham Company Partial Balance Sheet June 30, 2019 1 Accounts Receivable $241,000.00 2 Less: Allowance for Doubtful Accounts (14,200.00) $226,800.00 3 Notes Receivable 20,600.00 4 Total Receivables $247,400.00 5 *The company has a recourse liability of $2,300 for notes receivable sold with recourse. During the company’s fiscal year ending June 30, 2020, the following transactions occurred: 1. Sales on credit $870,800 2. Collections of accounts receivable 844,200 3. Accounts receivable written off as uncollectible 13,500 4. Customer notes received in payment of accounts receivable 72,500 5. Notes receivable collected 26,000 6. Notes receivable, previously sold with recourse, were paid at maturity. The associated recourse liability for this note is $700. 34,000 7. Notes receivable were defaulted 2,200 8. Collections on accounts previously written off 400 9. Bad debts were estimated to be 1.5% of credit sales Required: 1. Prepare the journal entries necessary for Upham to record the preceding transactions. (20 lines in the journal) 2. Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Upham’s June 30, 2020, balance sheet.

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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Upham Company’s June 30, 2019, balance sheet included the following information:

Upham Company

Partial Balance Sheet

June 30, 2019

1	Accounts Receivable	$241,000.00
2	Less: Allowance for Doubtful Accounts	(14,200.00)	$226,800.00
3	Notes Receivable		20,600.00
4	Total Receivables		$247,400.00
5	*The company has a recourse liability of $2,300 for notes receivable sold with recourse.

During the company’s fiscal year ending June 30, 2020, the following transactions occurred:

1.	Sales on credit	$870,800
2.	Collections of accounts receivable	844,200
3.	Accounts receivable written off as uncollectible	13,500
4.	Customer notes received in payment of accounts receivable	72,500
5.	Notes receivable collected	26,000
6.	Notes receivable, previously sold with recourse, were paid at maturity. The associated recourse liability for this note is $700.	34,000
7.	Notes receivable were defaulted	2,200
8.	Collections on accounts previously written off	400
9.	Bad debts were estimated to be 1.5% of credit sales

	Required:
1.	Prepare the journal entries necessary for Upham to record the preceding transactions. (20 lines in the journal)
2.	Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Upham’s June 30, 2020, balance sheet.

Upham Company
Partial Balance Sheet
June 30, 2020
1 Accounts Receivable
2 Less: Allowance for Doubtful Accounts
3 Notes Receivable
4 Notes Receivable Dishonored
5 Total Receivables

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