Exercise 5-22 Complete the accounting cycle using receivable transactions (LO5-1, 5-2,5-4,5-5, 5-7) (GL) The general ledger of Pop's Fireworks includes the following account balances in 2021: Credit Debit $ 23,800 48,000 $ 4,800 10,600 36,000 98,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (8%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals 14,900 158,000 31,200 127,400 72,200 28,100 19,600 $336,300 $336,300 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $20,000. All services on account include terms 2/10, n/30. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected. b. Accrue interest on the note receivable of $36,000, which was accepted on October 1, 2021. Interest is due each September 30. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2021, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. 7. Using the information from the requirements above, complete the 'Analysis' tab. 1 1 Record the services provided to customers on account, $20,000. 2 Record the cash received from the customer with sales discount against the receivable on account, $11,500. 3 Record the accounts receivable written off as uncollectible, $6,700. Record the estimate of future bad debts. 5 Record the interest accrued on note receivable. 6 Record the closure of revenue accounts. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements in the previous tabs, complete the 'Analysis' tab. Analyze the following information: (a) By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021? Bad Debt Expense (b) What is the ending balance of Allowance for Uncollectible Accounts ? Ending Balance of Allowance for Uncollectible Accounts (c) What amount of cash is expected to be collected from accounts receivable? Amount expected to be collected
