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On January 1, 2019 ABC Company's Accounts Receivable balance was $200,000, and the balance in the Allowance for Bad Debts was a credit balance of
On January 1, 2019 ABC Company's Accounts Receivable balance was $200,000, and the balance in the Allowance for Bad Debts was a credit balance of $6.200. During 2019, the following transactions occurred 1. Sold merchandise for a sales price of $150,000 and received cash from the customer 2. Sold merchandise to several different customers for a total sales price of $255,000. These customers all paid with a credit card, which charges ABC a 3% fee. 3. Sold merchandise for a total sales price of $519,000 on account (0.9. credit sales), with terms 2/15, 1/45. 4. ABC wrote off $7,000 of Accounts Receivable as being uncollectible 5. Some of the customers from 13 above, who originally owed ABC $400,000, paid their bills within the discount period. The remaining customers from 13 above had not yet paid ABC at the end of the fiscal year. ABC uses the periodic Inventory system. In the space provided below, clearly mark your answers to the following THREE questions (Part A. Part c), Part A. What is Net Sales Revenue for 2019? Part B. What is the ending balance in the Accounts Receivable t-account as of December 31, 2019? Part C. ABC records the adjusting entry at year-end using the % of credit sales method. They expect 1% of credit sales will be uncollected (do not consider credit card sales as part of your credit sales number). What is the Net Realizable Value of Accounts Receivable (e.g. Net A/R) on December 31, 2019 (after adjusting entries)
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