Griswold's began operations in January, selling inexpensive sunglasses to large retailers like Walgreensand other smaller stores. Assume the following transactions occurred during its first six months of operations.

January 1

Sold merchandise to Walgreens for $29,000; the cost of these goods to Griswold's was $20,100.

February 12

Received payment in full from Walgreens.

March 1

Sold merchandise to Bravis Pharmaco on account for $3,900; the cost of these goods to Griswold's was $1,850.

April 1

Sold merchandise to Tonys Pharmacy on account for $8,900. The cost to Griswold's was $4,850.

May 1

Sold merchandise to Anjuli Stores on account for $2,900; the cost to Griswold's was $1,650.

June 17

Received $6,950 on account from Tonys Pharmacy.

Required:

1.

Complete the following aged listing of customer accounts at June 30.

		Unpaid Since
Customer	Total Balance	June	May	April	March
		(One Month)	(Two Months)	(Three Months)	(Greater than Three Months)
Anjuli Stores	$2,900		$2,900
Bravis Pharmaco	3,900				3,900
Tonys Pharmacy
Walgreens
Total			$2,900		$3,900

2.

Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent.

Estimated Uncollectible
One Month
Two Months
Three Months
More than Three Months
Total	$0

3-a.

Show how Griswold's would report its accounts receivable on its June 30 balance sheet.

GRISWOLD'S
Balance Sheet (partial)
At June 30

3-b.

What amounts would be reported on an income statement prepared for the six-month period ended June 30?

GRISWOLD'S
Income Statement (partial)
For the Six Months Ended June 30
	0
	$0