Ass Homework: Chapter 9 Homework Question 1, Problem 9-8A (similar to) HW Score: 0%, 0 of 2 points O Points: 0 of 2 Part 1 of 12 Save Ellworth Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the aging-of-accounts-receivable method. The company had the following account balances on November 30, 2020: Accounts Receivable Allowance for Doubtful Accounts (credit balance) $ 687,000 87,000 The following transactions took place during the month of December 2020: (Click the icon to view the transactions.) Required Requirement 1. Record the transactions in the general journal. December 2. Earth Inc., which owes $48,000, is unable to pay on time and has given a 25-day, 15-percent note in settlement of the account. (Record debits first, then credits. Exclude explanations from journal entries.) Date Dec. General Journal Accounts Debit Credit info tible accounts with the actimate based on the aging of accounts receivable mothed The 2 Earth Inc., which owes $48,000, is unable to pay on time and has given a 25-day, 15-percent note in settlement of the account. 6 Received from Ivy Gladstone the amount owed on a November 7 dishonoured note, plus extra interest for 30 days at 4 percent computed on the maturity value of the note ($14,000). This dishonoured note had been converted to an account receivable on November 7. 10 Received notice that a customer (Ted Googel) has filed for bankruptcy. Googel owes $19,600. The courts will confirm the amount recoverable at a later date. 11 18 27 27 Determined the account receivable from Kristen Walters ($9,800) was uncollectible and wrote it off. Received a cheque from the courts in the amount of $16,500 as final settlement of Googel's account. Earth Inc. paid the note received on December 2. Determined the account receivable for Donald Maggie ($5,500) was uncollectible and wrote it off. 31 31 31 Sales for the month totalled $726,000 (of which 75 percent were on account) and collections on account totalled $606,210. Ellworth Supply did an aging of accounts receivable that indicated that $78,000 is expected to be uncollectible. The company recorded the appropriate adjustment. Print Done - X st, Clear all Check