financial accounting

Acct 2210 Zeigler: Demo 7-1 (Accounting for Bad Debts) Solo Company was started on Jan 1, 2018 The following events occurred during 2018 and 2019 2018 Fren 1. Provided $4.000 of services on account (ie. All Credit Sales 2 Collected $3.000 cash from accounts receivable 3. Estimated uncollectible accounts to be 1.596 of credit sales We will only use the Percentage of Rare Method 165 2019 Events 1. Wrote of S40 of accounts receivable that were deemed collectible. 2. Provided $6.500 of services on account 3. Collected $5.400 cash from accounts receivable. 4. Received SS from a bad debt that had been previously written off Reinstated the account 5. Recorded the $5 cash received from the receivable reinstated in Event No. 4. 6. Estimated uncollectible accounts expense to be 19 of 2019 credit sales Required: Read Chp 74 cm the connect Grade Pre fore starting Parta. Record the events in T-accounts below. Complete sear2018 in its entirety first Part b. Enter these events using the horisontal statements model under the titles of the affected accounts. Compare the final halances in the accounts from Part with the ending balances in the horizontal financial statements modeli Part t otals) Demonstration Problem 7-1, Part a. T-accounts, Year 2018 Ledger T-Accounts Cash Liabilities Retained Earnings Accounts Receivable Services Revenue Allow. for Doubt. Accts Bad Debts Expense Demonstration Problem 7-1, Part b. Statements Model, Year 2018 Event Assets = Liab. + Equity Res. - Exp. = Net Inc. Cash Flow No. Cash + Accts. Rec. + (Allow.) = Ret. Earn. Beg, bal. 0 + 0 + 0 = 0 + 0 0 - 0 - 0 Totals 3.000 Demonstration Problem 7-1, Part a. T-accounts, Year 2019 Ledger T-Accounts * Note: Be sure to enter beginning of year 2019 Balances Cash Liabilities Retained Earnings Accounts Receivable Services Revenue Allow. for Doubt. Accts. Bad Debts Expense Demonstration Problem 7-1, Part b. Statements Model, Year 2019 Event Assets = Liab. + Equity Rev. - Exp. Net Inc. Cash Flow No. Cash + Accts. Rec. + (Allow.) - Rer. Earn. Beg. bal. 3,000 Totals What is Solo's "Net Realizable Value" (NRV) of Accounts Receivable at the end of 2019