llectible. Using the percentage of sales method: Determine the amount to be charged to the uncollectible expense account. Prepare the Allowance for uncollectible account. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 Journal Entries Date Particulars Debit($) Credit($) 10.1.20 Accounts Receivable 11000
llectible. Using the percentage of sales method: Determine the amount to be charged to the uncollectible expense account. Prepare the Allowance for uncollectible account. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 Journal Entries Date Particulars Debit($) Credit($) 10.1.20 Accounts Receivable 11000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible. Using the percentage of sales method:
Determine the amount to be charged to the uncollectible expense account.
Prepare the Allowance for uncollectible account.
Prepare the
Date | Particulars | Debit($) | Credit($) |
10.1.20 | Accounts Receivable | 11000 | |
To sales | 11000 | ||
15.5.20 | Allowance for uncollectible accounts(2500+400) | 2900 | |
To accounts receivable | 2900 | ||
4.8.20 | Cash(70% of 11000) | 7700 | |
Allowance for uncollectible accounts(30% of $11000) | 3300 | ||
To Accounts Receivable | 1100 | ||
26.10.20 | Accounts Receivable(30% of $400) | 120 | |
To allowance for uncollectible accounts | 120 | ||
26.10.20 | Cash | 120 | |
To accounts receivable | 120 | ||
31.12.20 | 91380 | ||
To allowance for uncollectible accounts | 91380 | ||
allowance of uncollectible accounts
Particulars | Amount($) |
Estimated uncollectible accounts showed as per aging schedule(A) | 116500 |
Closing balance of uncollectible accounts(10% of $312000) | 31200 |
Accounts Receivable written off during the year(2900+3300) | (6200) |
Bad debt recovered during the year | 120 |
Total (B) | 25120 |
Additional provision to be made(A-B) | 91380 |
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