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C8-1 (Algo) Recording and Reporting Credit Sales and Bad Debts Using the Aging of Accounts Receivable Method (Chapters 6 and 8) [LO 6-4, LO 8-2]

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C8-1 (Algo) Recording and Reporting Credit Sales and Bad Debts Using the Aging of Accounts Receivable Method (Chapters 6 and 8) [LO 6-4, LO 8-2] Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandine to Walqreens for $13,000; the cost of these goodn to or wan $5,700. February 12 Recelved paynent in ful1 from Walgreens. March 1 sold merchandine to Bravis Pharmace on account for $2, 300; the cost of these goods to or wal $1, 050. Apri1 i Sold merchandine to Tony'n Pharmacy on account for $7,300. The cont of these 950 da co 0 . May 1 sold merchandine to Anjuli storen on account for 51,300 ; the cont to of yan $850. June 17 heceived $6,150 on account fron Tony's Pharnacy. Required: 1. Complete the following aged listing of customer accounts at June 30 . 2. Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 3 percent; two months, 4 percent, three months, 20 percent; more than three months, 30 percent 3-a. Show how GI would report its accounts recelvable on its June 30 balance sheet. 3-b. What amounts would be reported on an income statement prepared for the six-month period ended June 30 ? Complete the following aged listing of customer accounts at June 30 . Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 3 percent; two months, 4 percent; three months, 20 percent; more than three months, 30 percent. Show how GI would report its accounts receivable on its June 30 balance sheet. What amounts would be reported on an income statement prepared for the six-month period ended June 30

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