Question
Calculate accounts receivable, allowance for uncollectible accounts, and net receivables at the end of the month for each situation a. through c. a) The Allowance
Calculate accounts receivable, allowance for uncollectible accounts, and net receivables at the end of the month for each situation a. through c.
a) The Allowance for Uncollectible Accounts has a $1,200 credit balance at the beginning of the month. Net credit sales during the month are $830,000 and 4% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 at the beginning of the month. During the month, $500 of uncollectible accounts are written off
b) The Allowance for Uncollectible Accounts has a $900 debit at the beginning of the month. Net credit sales during the month are $875,000. Based on an aging schedule of accounts receivable prepared at the end of the month, $17,900 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 at the beginning of the month. During the month, $1,000 of uncollectible accounts are written off.
c) The Allowance for Uncollectible Accounts has a $16,300 credit balance at the beginning of the month. Net credit sales during the month are $850,000. Based on an aging schedule of accounts receivable prepared at the end of the month, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $958,000 at the beginning of the month. During the month, $1,000 of uncollectible accounts are written off.
Please show the steps and calculations.
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