Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with parts C and D please:) Analyzing Accounts Receivable Changes In 2019, Grant Corporation recorded credit sales of $3,200,000 and bad debts
I need help with parts C and D please:)
Analyzing Accounts Receivable Changes In 2019, Grant Corporation recorded credit sales of $3,200,000 and bad debts expense of $42,000. Write-offs of uncollectible accounts totaled $39,000 and one account, worth $12,000, that had been written off in an earlier year was collected in 2019. a. Prepare journal entries to record each of these transactions. b. If net accounts receivable increased by $220,000, how much cash was collected from credit customers during the year? Prepare a journal entry to record cash collections. C. Set up T-accounts and post each of the transactions in parts a and b to them. d. Record each of the above transactions in the financial statement effects template to show the effect of these entries on the balance sheet and income statement. C. Set up T-accounts and post each of the transactions in parts a and b to them. Cash (A) Allowance for Uncollectibles (XA) Sales Revenue (R) Accounts Receivable (A) 0 x 0 0 0 o 0 o > 0 x (i) (ii) 0 0 0 0 0 0 x 0 O 0 0 0 0 x (iii) 0 x 0 0 0 (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (1) (ii) (iii) (iv) (v) (vi) 0 0 0 x 0 0 0 x 0 0 0 x 0 0 0 x (iv) (v) (vi) 0 0 0 0 0 X 0 0 0 x 0 0 0 0 Balance 0 x 0 Balance 0 x 0 Balance 0 0 x Balance 0 0 X Bad Debts Expense (E) 0 0 0 x 0 0 0 (i) (ii) (iii) (iv) (v) (vi) 0 O O 0 0 0 Balance 0 x 0 Check d. Record each of the above transactions in the financial statement effects template to show the effect of these entries on the balance sheet and income statement. Note: Use a negative sign with answers, when appropriate. Income Statement Noncash Balance Sheet Contra Assets Liabilities Contrib. Capital Earned Capital Transaction Cash Asset + Asset + Revenues Expenses = Net Income 0 + 32,000,000 x 0 0 o + 0 x 0 x 0 0 x + + 0 + 0 0 x = o 0 + 0 X 0 0 x = 0 x 0 + 0 x = 0 + O + 0 0 O = O (i) (ii) (iii) (iv) (v) (vi) (390,000) * 39,000 * - 0 + 0 x = O + 0 + O 0 0 0 0 x + 0 X- 0 = + O + 0 0 0 = 0 0 x + 0 X- O 0 + II 0 + 0 0 0 11 0 CheckStep 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