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Most of those are not right. The accounts receivable balance for Don's Shoe Repair at December 31, 2014, was $87,000. Also on that date, the
Most of those are not right.
The accounts receivable balance for Don's Shoe Repair at December 31, 2014, was $87,000. Also on that date, the balance in Allowance for Doubtful Accounts was $2,400. During 2015, $2,500 of accounts receivable were written off as uncollectible In addition, Don's Shoe Repair unexpectedly collected $110 of receivables that had been written off in a previous accounting period. Sales on account during 2015 were $217,000, and cash collections from receivables were $218,991. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Also on that date, the balance in Allowance for Doubtful Accounts was $2,400 and the balance in Retained Earnings was $84,600. Required a. Organize the information in accounts under an accounting equation. (Show effect on the accounting equation in the order provided in the question. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".) DON'S SHOE REPAIR Horizontal Statements Model Equity Accounts Titles for Retained Liabilities Retained Earnings Assets Event Accounts Cash Allowance Receivable Earnings 87,000 Bal 2,400 1. (2,500) (2,500) Accounts Receivable 2a 110 110 Accounts Receivable 218,991 Revenue 2b. 218,991 3 2.170 (2,170) Revenue NA 84,500 219,101 2,070 216,931 BalStep by Step Solution
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