prepare an accounting equation for the accounts receivable balance and allowance for uncollectible. Also, explain why companies
Question:
prepare an accounting equation for the accounts receivable balance and allowance for uncollectible. Also, explain why companies adopt the adjusted allowance method.
Remember to use the excel file and watch the video attached in this module to assist you with the assignment.
Following is a list of transactions for October 201X for Company A.
Oct. 1 Beginning Accounts Receivable balance is $49,000
Oct. 4 Collected $4,600 from a cash customer
Oct. 5 Collected $4,600, the amount due
Oct. 6 Provided Services of $5,000 on account
Oct. 7 Customer only partially paid invoice, $2,000
Oct. 12 Collected on the invoice that was previously written off $6,000
Oct. 17 Wrote off the uncollectable amount of $3,000
Oct. 31 Adjusted Allowance account, it is 1% of Accounts Receivable ending balance
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood