Chapter 5, Problem 5.66BP

(Learning Objective 5: Apply GAAP for uncollectible receivables) The September 30, 2019, records of West Point Communications include these accounts:

Accounts Receivable..............................	$249,000
Allowance for Doubtful Accounts..............	(8,000)

During the year, West Point Cotm1unications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule:

During the last quarter of 2019, the company completed the folloWing selected transactions:

Nov 30	Wrote off as uncollectible the $1,200 account receivable from Looper carpets and the $800 account receivable from Williams Antiques
Dec 31	Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the again of receivable.

Requirements

1. 1. Record the transactions for the last quarter of 2019 in the journal. Explanations are not required.
2. 2. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account.
3. 3. Show how West Point Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company’s Accounts Receivable balance was $212,000 and the Allowance for Uncollectible Accounts stood at $4,800.