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Accounts Receivable, Notes Receivable Beginning Balance in Accounts Receivable: $15,000 Beginning Balance in Allowance for Uncollectible Accounts is a debit of $120 You will need
Accounts Receivable, Notes Receivable
Beginning Balance in Accounts Receivable: $15,000
Beginning Balance in Allowance for Uncollectible Accounts is a debit of $120
You will need to prepare a t-account for accounts receivable and allowance for uncollectible (doubtful) accounts. Use a 360-day year to calculate interest.
- Adjust the allowance for uncollectible accounts assuming that 10% of the balance accounts receivable will be written off in the coming year.
- Derrick sends a note via carrier pigeon stating he will not be able to pay off his account. Write off the $270 account using the allowance method.
- Archie audits Merediths accounting records for $2,000. is paid in cash and the remainder put on account.
- Torres calls and requests an extension on her accounts receivable. Her $5,000 account is transferred to a notes receivable with terms of 10% and 90 days.
- Cristina dishonors her note receivable of $3,000. Terms were 60 days and 5% interest. Charge back to accounts receivable.
- Alex brings $900 in cash by the office to pay his bill.
- Derrick sends a check for $50.
- Meredith pays $500 of the $1,000 she owes and the remaining $500 is put on a 30 day 15% note.
- Adjustment: Recognize 30 days of the note in #4 and 15 days of the note in #8.
- Cristina pays her account in full.
- The bank sends a note stating Alexs cash was counterfeit. Put back on his account.
- Meredith dishonors her note. Write off the account.
- Write off Alexs account.
- Based on the ending balance of accounts receivable, assume that 5% will be written off in the coming year and update the allowance account to reflect this amount.
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