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On November 30, Candy Party Planners had a $37,000 balance in Accounts Receivable and a $3.115 credit balance in Allowance for Uncollectible Accounts. During December,
On November 30, Candy Party Planners had a $37,000 balance in Accounts Receivable and a $3.115 credit balance in Allowance for Uncollectible Accounts. During December, Candy made credit sales of$193,000. December collections on account were $169,000, and write-offs of uncollectible receivables totaled $2.840. Uncollectible-accounts expense is estimated as 4% of credit sales. No sales returns are expected. Requirements 1. Joumalize sales, collections, write-offs of uncollectibles. and uncollectible-account expense by the allowance method during December. Explanations are not required. 2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Nef Accounts Receivable at December 31. How much does Candy expect to colect? 3. Show how Candy Party Planners will report accounts receivable and net sales on its December 31 balance sheet and income statement for the month ended December 3
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