6. Prepare entries in a general journal (page 4) for summary transactions (d) through (g) for Robert on December 31.

General Journal Instructions

PAGE 4

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10

8. Record the appropriate adjusting entry for Robert's estimate of uncollectible accounts.

Note: You must complete the Analysis page to determine the amount of the adjustment.

PAGE 4

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3

. Beginning balances (items (a) through (c)) in general ledger accounts for Robert are given. Post the entries to the general ledger for Robert.

8. Post the adjusting entry for Robert's estimate of uncollectible accounts to the general ledger for Robert.

General Ledger Instructions

GENERAL LEDGER

Account: Cash101Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jan. 1	Balance				300,000.00
2
3

Account: Accounts Receivable122Account No.

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1	Jan. 1	Balance				50,000.00
2
3
4
5
6

Account: Allowance for Doubtful Accounts122.1Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Jan. 1	Balance					5,000.00
2
3
4

Account: Sales401Account No.

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1

Account: Bad Debt Expense532Account No.

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1

8. Robert bases the estimate of uncollectible accounts on an aging schedule of accounts receivable. Using the following information, complete the aging of receivables schedule and compute the estimated uncollectible accounts.

AGING SCHEDULE OF ACCOUNTS RECEIVABLE FOR ROBERT
					Number of Days Past Due
Customer	Total	Not Yet Due	130	3160	6190	91120	Over 120
Beets, D.
Cook, L.
Hylton, D.
Martin, D.
Stokes, D.
Taylor, T.
Thomas, O.
Tower, R.
Williams, G.
Total
Estimated percent uncollectible		.02	.05	.10	.25	.50	.80
Total estimated uncollectible accounts							9. Compute the net realizable value of Roberts accounts receivable on December 31, 20--.

Thank you so much for your help!

Sam and Robert aro identical twine. They opened identical businesses and experienced identical transactions. However, they decided to estimato uncollectiblo accounts in different ways. Sam elected to use the percentage of sales method, and Robert elected to use the percentage of receivables method. Usted below are the beginning balances of Cash, Accounts Receivable, and Allowance for Doubtful Accounts [items (a)(c)), and summary transactions that occurred during the year items (d)-(a) for both businesses. Remember, both businesses experienced the same events: credit sales, collections of receivables, and write-offs. The only difference between the businesses is the method of estimating uncollectible accounts. Robert $300,000 50,000 5,000 (a) Balance of Cash, January 1, 20- (b) Balance of Accounts Receivable, January 1 (c) Balance of Allowance for Doubtful Accounts, January 1 (d) Sales on account during 20- (o) Collections on account during 20- (1) Uncollectible accounts written off during 20- (a) Collections made on nccounts written off during 20- 550,000 530,000 4,500 500 Approach this problem from Robert's point of view. Required: 6. Prepare entries in a general Journal (page 4) for summary transactions (a) through (@) for Robert. 7. Post the entries to a general ledger for Robert, using the same accounts and numbers as were used for San. B. Robert bases the estimate of uncollectible accounts on an aging schedule of accounts receivable. Using the following information, compute the estimated uncollectible amounts and make the appropriate adjusting entry in a general journal. Post the entry to the general ledger accounts on December 31, 20 Customers Invoice Dates and Amounts for Unpaid Invoices Beets, D. 10/7 $2,300 11/15 $1,200 12/18 $8,500 Cook, L. 6/1 1,200 8/15 2,500 9/23 4,300 10/22 2,500 12/23 2,800 1,500 10/15 5,400 11/12 3,200 12/15 9/9 200 12/15 9,500 Hylton, D. Martin, D. Stokes, D. Taylor, T. Thomas, O. Tower, R. Williams, G. 11/20 400 12/10 1,400 12/2 5,500 12/15 2,300 11/18 2,800 12/8 8,000 All sales are billed 1/30. The following aging chart is used to estimate the uncollectibles using the percentage of receivables method: Age Interval Not yet due Estimated Percent Uncollectible 2% 1-30 days 5 31-60 days 10 25 61-90 days 91-120 days Over 120 days 50 80 9. Compute the net realizable value of Robart's annunte meravahin an Daramhar CHART OF ACCOUNTS Company Robert General Ledger ASSETS REVENUE 101 Cash 401 Sales 122 Accounts Receivable 122.1 Allowance for Doubtful Accounts EXPENSES 141 Supplies 145 Prepaid Insurance 181 Office Equipment 181.1 Accumulated Depreciation Office Equipment 511 Wages Expense 512 Advertising Expense 521 Rent Expense 523 Supplies Expense 525 Phone Expense 532 Bad Debt Expense LIABILITIES 202 Accounts Payable 219 Wages Payable 535 Insurance Expense 541 Depreciation Expense-Office Equipment 549 Miscellaneous Expense EQUITY 311 Owner's Capital 312 Owner's Drawing