On June 30, 2020, Perfect Party Planners (PPP) had a $40,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During July, PPP made credit sales of $75,000. July collections on account were $60,000, write-offs of uncollectible receivables totalled $2,200, and an account of $1,000 was recovered. Bad debt expense is estimated to be $1,500.

Requirements

1.

Journalizesales, collections,write-offs ofuncollectibles, recovery of accountsreceivable, and bad debt expense by the allowance method during July. Explanations are not required.

2.

Show the ending balances in AccountsReceivable, Allowance for UncollectibleAccounts, and Net Accounts Receivable at July 31. How much does PPP expect tocollect?

3.

Show how PPP will report Accounts Receivable on its July 31 balance sheet. Use the format"Accounts Receivable, net of allowance for uncollectible accounts of $" at July 31, 2020. Insert the valueyou've calculated for the allowance.On June 30, 2020, Perfect Party Planners (PPP) had a $40,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During July, PPP made credit sales of $75,000. July collections on account were $60,000, write-offs of uncollectible receivables totalled $2,200, and an account of $1,000 was recovered. Bad debt expense is estimated to be $1,500.

Requirements

1.

Journalizesales, collections,write-offs ofuncollectibles, recovery of accountsreceivable, and bad debt expense by the allowance method during July. Explanations are not required.

2.

Show the ending balances in AccountsReceivable, Allowance for UncollectibleAccounts, and Net Accounts Receivable at July 31. How much does PPP expect tocollect?

3.

Show how PPP will report Accounts Receivable on its July 31 balance sheet. Use the format"Accounts Receivable, net of allowance for uncollectible accounts of $" at July 31, 2020. Insert the valueyou've calculated for the allowance.