At the beginning of 2009 , Penman Company had the following account balances.

During 2009, Penman's credit sales were \(\$ 1,173,000\) and collections on accounts receivable were \(\$ 1,150,000\). The following additional transactions occurred during the year.

Compute the ending balances in accounts receivable and the allowance for uncollectible accounts. Show how Penman's December 31, 2009, balance sheet reports the two accounts.

Transcribed Image Text:

Feb. 17 May 28 Dec. 15 Dec. 31 Wrote off Nissim's account, $3,600. Wrote off Weiss's account, $2,400. Wrote off Ohlson's account, $900. Recorded the bad debts expense assuming that Penman's policy is to record bad debts expense as 0.8% of credit sales. (Hint. The allowance account is increased by 0.8% of credit sales regardless of write-offs.)