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On April 30, 2020, Ace Audio Inc had a $42,000 balance in Accounts Receivable and a $3,400 credit balance in Allowance for Uncollectible Accounts. During
On April 30, 2020, Ace Audio Inc had a $42,000 balance in Accounts Receivable and a $3,400 credit balance in Allowance for Uncollectible Accounts. During May, Ace Audio had credit sales of $72,000, collections on account were $60,000, write-offs of uncollectible receivables totalled $2,700, and an account of $1,500 that had previously been written off was recovered. Mays bad debt expense was estimated to be $6,480.
Required:
- Prepare journal entries for Ace Audios May sales, collections, write-offs of uncollectibles, recovery of accounts receivable, and bad debt expense. Explanations are not required. (Record debits first, then credits).
- Using the information above, how much does Ace Audio expect to collect as a result of the May activities and estimates?
- Prepare the May 31, 2020 balance sheet representation of Account Receivable, showing net Accounts Receivable amount and the net of allowance for uncollectible amount.
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