S5-10. (Learning Objective 4: Applying the allowance method to account for uncollectibles)

Use the information from the following journal entries of Green Leaves Furniture Restoration to answer the questions below:

Requirements 1. Start with Accounts Receivable’s beginning balance ($48,000) and then post to the Accounts Receivable T-account. How much do Green Leaves Furniture Restoration’s customers owe the company at December 31?
2. Start with the Allowance account’s beginning credit balance ($10,480) and then post to the Allowance for Uncollectible Accounts T-account. How much of the receivables at December 31 does Green Leaves Furniture Restoration expect not to collect?
3. At December 31, how much cash does Green Leaves Furniture Restoration expect to collect on its accounts receivable?

Transcribed Image Text:

1 A D 123456789025 Journal Entry Accounts 1. Accounts Receivable Debit 1,200,000 Credit Sales Revenue 2. Cash 1,200,000 980,000 Accounts Receivable 980,000 10 3. Allowance for Uncollectible Accounts Accounts Receivable 18,000 18,000 11 12 4. Uncollectible-Account Expense 40,000 13 Allowance for Uncollectible Accounts 40,000 14