On November 30, Windsor Party Planners had a $43,000 balance in Accounts Receivable and a $3,700 credit

Question:

On November 30, Windsor Party Planners had a $43,000 balance in Accounts Receivable and a $3,700 credit balance in Allowance for Uncollectible Accounts. During December, Windsor Party Planners made credit sales of $195,000. December collections on account were $164,000, and write-offs of uncollectible receivables totaled $2,820. Uncollectible-accounts expense is estimated as 1% of credit sales.

Requirements

1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required.

2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at December 31. How much does Windsor Party Planners expect to collect?

3. Show how Windsor Party Planners will report accounts receivable and net sales on its December 31 balance sheet and income statement for the month ended December 31.

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...