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On December 31,2023 , Oriole Company reported the following information in its financial statements: During 2024, the company had the following transactions related to receivables:
On December 31,2023 , Oriole Company reported the following information in its financial statements: During 2024, the company had the following transactions related to receivables: 1. Sales were $10,550,000, of which $8,440,000 were on account. 2. Collections of accounts receivable were $7,287,000. 3. Writeoffs of accounts receivable were $79,000. 4. Recoveries of accounts previously written off as uncollectible were $8,800. (Note that this amount is not included in the collections referred to in item 2 above.) No. Account Titles and Explanation Debit Credit (1) Accounts Receivable 8440000 Cash 2110000 (2) Cash 7287000 Accounts Receivable 7287000 (3) Allowance for Expected Credit Losses 79000 (4) Accounts Receivable 79000 Accounts Receivable Allowance for Expected Credit Losses (To reinstate an accounts that were previously written off) Cash 8800 Accounts Receivable 8800 Enter the Accounts Receivable and the Allowance for Expected Credit Losses balances on January 1, 2024. Then post the entries presented in the previous part and calculate the new balances in these accounts. (Post entries in the order of journal entries presented in the previous part.) Prepare the journal entry to record the credit losses for 2024 . Oriole Company has determined that the length of time a receivable is outstanding is the most appropriate credit risk characteristic for determining expected credit losses, and the company has prepared an aging schedule, which indicates that the expected credit losses as at the end of 2024 total $93,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entr) for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Show what would be presented on the statement of financial position as at December 31,2024 , related to accounts receivable
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