On November 30, High Peaks Party Planners had a $ 34,000 balance in Accounts Receivable and a
Question:
On November 30, High Peaks Party Planners had a $ 34,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During December, the store made credit sales of $ 159,000. December collections on account were $ 130,000, and write-offs of uncollectible receivables totaled $ 2,700. Uncollectible-account expense is estimated as 1 % of revenue.
Requirements
1. Journalize 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 Net Accounts Receivable at December. How much does the store expect to collect?
3. Show how the store will report accounts receivable and net sales on its December 31 balance sheet and income statement.
Requirement 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. (Record debits first, then credits.)
(a) Begin by recording the journal entry for December sales.
On November 30, High Peaks Party Planners had a $ 34,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During December, the store made credit sales of $ 159,000. December collections on account were $ 130,000, and write-offs of uncollectible receivables totaled $ 2,700. Uncollectible-account expense is estimated as 1 % of revenue. Requirements 1. Journalize 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 Net Accounts Receivable at December. How much does the store expect to collect? 3. Show how the store will report accounts receivable and net sales on its December 31 balance sheet and income statement. Requirement 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. (Record debits first, then credits.) (a) Begin by recording the journal entry for December sales. Date (a) Journal Entry Accounts Debit Credit Expert Answer:
