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ces Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens a smaller stores. Assume the following transactions occurred
ces Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens a smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandise to Walgreens for $26,000; the cost of these goods to GI was $17,400. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,600; the cost of these goods to GI was $1,700. April 1 Sold merchandise to Tony's Pharmacy on account for $8,600. The cost to GI was $4,700. May 1 Sold merchandise to Anjuli Stores on account for $2,600; the cost to GI was $1,500. June 17 Received $6,800 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, percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how Gl 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?
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