Agency Supply completed the following selected transactions during 2012: Jan 17 Sold inventory to Jim Haynes, $900

Question:

Agency Supply completed the following selected transactions during 2012:

Jan 17 Sold inventory to Jim Haynes, $900 on account. Ignore cost of goods sold.

Jun 29 Wrote off Jim Haynes’s account as uncollectible after repeated efforts to collect from him.

Aug 6 Received $500 from Jim Haynes, along with a letter stating his intention to pay within 30 days. Reinstated Haynes’s account in full.

Sep 4 Received the balance due from Jim Haynes.

Dec 31 Made a compound entry to write off the following accounts as uncollectible:

Bernard Clark, $150; Marie Montrose, $250; and Teresa Walsh, $450.

Dec 31 Based on an aging of accounts receivable, estimated uncollectible accounts as $3,300.

Requirements

1. Open T-accounts for Allowance for Uncollectible Accounts and Bad Debt Expense. These accounts have beginning balances of $1,700 (cr.) and 0, respectively.

2. Record the transactions in the journal and post to the two T-accounts; remember to update account balances but ignore posting references.

3. The December 31 balance of Accounts Receivable is $139,000. Show how Accounts Receivable would be reported on the balance sheet at that date.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...