C8-1 (Static) 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] Okay Optical, Incorporated (OOI), 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 merchandise to Walgreens for $20,000; the cost of these goods to 001 was $12,000. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,000; the cost of these goods to 001 was $1,400. April 1 Sold merchandise to Tony's Pharmacy on account for $8,000. The cost to 001 was $4,400. May 1 Sold merchandise to Anjuli Stores on account for $2,000; the cost to 001 was $1,200. June 17 Received $6,500 on account from Tony's Pharmacy. 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, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how OOI would report its accounts receivable 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 this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Complete the following aged listing of customer accounts at June 30. Unpaid Since June Customer Total Balance May April March (One Month) (Two Months) (Three Months) (Greater than Three Months) Anjuli Stores Bravis Pharmaco 2,000 $ 2,000 3,000 3,000 Tony's Pharmacy Walgreens Total < Req 1 Req 2 > C8-1 (Static) 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] Okay Optical, Incorporated (OOI), 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 merchandise to Walgreens for $20,000; the cost of these goods to 001 was $12,000. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,000; the cost of these goods to 001 was $1,400. April 1 Sold merchandise to Tony's Pharmacy on account for $8,000. The cost to OOI was $4,400. May 1 Sold merchandise to Anjuli Stores on account for $2,000; the cost to 001 was $1,200. June 17 Received $6,500 on account from Tony's Pharmacy. 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, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how OOI would report its accounts receivable 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 this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. Estimated Uncollectible One Month Two Months Three Months More than Three Months Total $ 0 < Req 1 Req 3A > C8-1 (Static) 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] Okay Optical, Incorporated (OOI), 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 merchandise to Walgreens for $20,000; the cost of these goods to 001 was $12,000. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,000; the cost of these goods to 001 was $1,400. April 1 Sold merchandise to Tony's Pharmacy on account for $8,000. The cost to 001 was $4,400. May 1 Sold merchandise to Anjuli Stores on account for $2,000; the cost to 001 was $1,200. June 17 Received $6,500 on account from Tony's Pharmacy. 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, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how OOI would report its accounts receivable 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 this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Show how OOI would report its accounts receivable on its June 30 balance sheet. OKAY OPTICAL, Incorporated Balance Sheet (partial) At June 30 Accounts Receivable, Net of Allowance $ < Req 2 Req 3B > C8-1 (Static) 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] Okay Optical, Incorporated (OOI), 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 merchandise to Walgreens for $20,000; the cost of these goods to 001 was $12,000. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,000; the cost of these goods to 001 was $1,400. April 1 Sold merchandise to Tony's Pharmacy on account for $8,000. The cost to 001 was $4,400. May 1 Sold merchandise to Anjuli Stores on account for $2,000; the cost to 001 was $1,200. June 17 Received $6,500 on account from Tony's Pharmacy. 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, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how OOI would report its accounts receivable 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 this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B What amounts would be reported on an income statement prepared for the six-month period ended June 30? OKAY OPTICAL, Incorporated Income Statement (partial) For the Six Months Ended June 30 0 $ 0 < Req 3A Req 3B