Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Facial Cosmetics (FC) provides plastic surgery services for its customers. During 2019, FC provided services of $410,000 on account. The 12/31/19 Accounts Receivable balance is
Facial Cosmetics (FC) provides plastic surgery services for its customers. During 2019, FC provided services of $410,000 on account. The 12/31/19 Accounts Receivable balance is $60,000 - amounts still owed to FC. FC's 12/31/19 balance in the Allowance for Uncollectible Accounts before adjustment is $700 (credit). FC's aging schedule as of 12/31/19 is below. Age Group as of 12/31/19 Accounts Receivable Amounts Estimated Percent Uncollectible Not yet due $45,000 2% 0-30 days past due 10,000 6% 31-60 days past due 5,000 12% Total $60,000 REQUIREMENT 1 (2 points): What should be the 12/31/19 balance in the Allowance for Uncollectible Accounts? REQUIREMENT 2 (4 points): Record the 12/31/19 adjusting journal entry needed to adjust the Allowance for Uncollectible Accounts to its required balance. REQUIREMENT 3 (3 points): Calculate the 12/31/19 net realizable value of Accounts Receivable. REQUIREMENT 4 (3 points): On April 3, 2020, a customer's account balance of $450 is written off as uncollectible. Record the journal entry for this write-off
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started