Taylor Furniture Company Inc. uses the allowance method to account for uncollectible accounts.

Instructions

In your working papers:

1. Record the following transactions in the general journal on page 24.

2. Post the transactions to the appropriate accounts.

3. Prepare the Assets section of the balance sheet for Taylor Furniture Company Inc. using the partial general ledger in your working papers. The balance of other asset accounts are Merchandise Inventory, $42,000; Supplies, $1,500; and Prepaid Insurance, $1,200.

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Date May 4 Nov. 18 Dec. 31 Transactions Using the allowance method, wrote off the account of Jack Bowers for $1,050 as uncollectible, Memorandum 241. Received $1,050 from Jack Bowers in full payment of his account, which was written off May 4, Memorandum 321 and Receipt 1078. The adjusting entry for the estimated uncollectible accounts expense for the year ended December 31 was $1,850.