Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Accounting for Receivables Ii 5. 6- Problems: Set A Jast e P8-1A At December 31, 2017, the general ledger and subsidiary ledger for Albert's, a
Accounting for Receivables Ii 5. 6- Problems: Set A Jast e P8-1A At December 31, 2017, the general ledger and subsidiary ledger for Albert's, a small auto parts stor showed the following: Accounts Receivable Subsidiary Ledger ng General Ledger Accounts receivable Allowance for doubtful accounts 75,000 Best Auto Repair 3,750 Brown's Repair $3,800 23,000 Custom Repair Jen's Auto Body Luxury Autos Total 35,000 3,200 $75,000 Jan. 3 Brown's Repair paid $18,000 on its account. 4 Custom Repair paid $1,400 on its account that had previously been written off. Jen's Auto Body purchased $3,800 of merchandise on account. Antique Auto Repair paid cash for $1,500 of merchandise. Jen's Auto Body returned $800 of merchandise. Luxury Autos paid $13,200 on its account. 8 9 18 19 20 Jen's Auto Body paid $25,000 on its account. 23 Brown's Repair purchased $5,600 on account. Custom Repair purchased $10,000 of merchandise on Visa. Luxury Autos purchased $18,000 of merchandise on account. 25 26 31 Albert's determined that the Best Auto Repair account receivable was not collectible. Instructions (a) Record the above transactions. Ignore credit card fees and any entries to the Inventory or Cost of Goods (b) Set up T accounts for the Accounts Receivable general ledger (control) account, the Allowance for Doubtl Sold accounts for purposes of this question. Accounts general ledger account, and the Accounts Receivable subsidiary ledger accounts. Post the journa (c) Albert's estimated that 10% of accounts receivable is not collectible. Record the required adjustment to (d) Prepare a list of customers and the balances of their accounts from the subsidiary ledger. Prove that the entries to these accounts. Allowance for Doubtful Accounts. of the subsidiary ledger is equal to the control account balance. TAKING IT FURTHER Albert Frickson the owner of A lhert's is considering changing his customer payn t
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started