Checker Flag Auto Parts, Inc., completed the following selected transactions during 2018: Jan 17 Sold inventory to
Question:
Checker Flag Auto Parts, Inc., completed the following selected transactions during 2018:
Jan 17 Sold inventory to Sandy Skovic, $500 on account. Ignore cost of goods sold.
Jun 29 Wrote off Sandy Skovic’s account as uncollectible after repeated efforts to collect from her.
Aug 6 Received $400 from Sandy Skovic, along with a letter stating her intention to pay within 30 days. Reinstated Skovic’s account in full.
Sep 4 Received the balance due from Sandy Skovic.
Dec 31 Made a compound entry to write off the following accounts as uncollectible:
Mary Sloan, $125; Jim Nielson, $260, and Adam Jameson, $375.
Dec 31 Based on an aging of accounts receivable, estimated uncollectible accounts as $1,680.
Requirements
1. Open T-accounts for Allowance for Uncollectible Accounts and Bad Debt Expense. These accounts have beginning balances of $1,100 (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 $23,470. Show how Accounts Receivable would be reported on the balance sheet at that date.
Accounts ReceivableAccounts 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...
Step by Step Answer:
Req 1 Req 2 Journal DATE ACCOUNTS AND EXPLANATIONS POST REF Dr Cr 2018 Jan 17 Accounts receivable x ...View the full answer
