Perform the following accounting for the receivables of Hawkins and Harris, a CPA firm, at December 31,
Question:
Perform the following accounting for the receivables of Hawkins and Harris, a CPA firm, at December 31, 2018.
Requirements
1. Set up T-accounts and start with the beginning balances for these T-accounts:
■ Accounts Receivable, $104,000
■ Allowance for Uncollectible Accounts, $12,000
Post the following 2018 transactions to the T-accounts:
a. Service revenue of $695,000, all on account
b. Collections on account, $720,000
c. Write-offs of uncollectible accounts, $8,000
d. Uncollectible-account expense (allowance method), $15,000
2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
3. Show how Hawkins and Harris will report accounts receivable on its balance sheet at December 31, 2018.
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 and 2 Req 3 BALANCE SHEET Accounts receivable 71000 Less Allowance f...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
