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12/31/17 Co estimates 4% of its outstanding $300,000 in receivables will be uncollectable. ADA already has a credit balance of $1000. A) Make the Je
12/31/17 Co estimates 4% of its outstanding $300,000 in receivables will be uncollectable. ADA already has a credit balance of $1000. A) Make the Je to record estimated uncollectable receivables. B) On 1/31/18 $2000 of receivables is determined to be uncollectable. Make JE. C) What is ADA balance 2/1/18? D) What are net (or cash) receivables on 2/1/18? E) Are the two net receivable figures, from both before and after 1/31 write off different in value? Why or why not? F) On 2/3/18 Co learns the $2000 it had written off is now paid in full. G) 2/15/18 Co sells $100,000 of receivables to Factor Co at a 5% service charge. H) 3/3/18 Co sells $1000 of goods to customer who paid with Visa or Mastercard where the card company charges 5% fee. 1) Co accepts a $10,000 Note in settlement from a customer who already owes Co $10,000
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