Please follow the rubric and the correct amounts in the question below. Please, don't copy+paste the answer already available on Chegg. It is incorrect.
Analyze accounts receivable and allowance Comments Beginning balance + credit sales - sub total - cash receipts - write offs- ending balance, Allowance beginning + bad debt expense-write offs ending view longer description Adjusting entry view longer description Comments The journal entry is required to adjust allowance... not to record the ending balance of the allowance. You only needed a $65k adjustment JackJoe, Inc. sells toy mice to upscale pet stores. The company has a broad customer base, and routinely sells on credit. Annually, the company reviews and updates its allowance for uncollectible accounts. The company's accounting assumption is that XX.X% (select a collectible % from between 93.5% and 95.5%)of the end of year Accounts receivable balance will be collectible. Write- offs against the allowance account are made throughout the year when individual accounts are deemed to be uncollectible. Following are relevant facts for the current year: January 1, x1 balance in accounts receivable is $2,500,000 and Allowance for doubtful accounts is $110,000. JackJoe sold $10,000,000 of toy mice during the year on credit and collected $10,900,000 of cash. During X1, $100,000 of uncollectible accounts were written off against the allowance. Create an account analysis for both Accounts receivable and Allowance (a) for doubtful accounts. (5 points) (b) Prepare the yearend adjusting journal entry. (5 points) How will the accounts receivable and allowance appear on the Dec 31, (c) X1 Balance sheet? (5 points) Test 2: Question 2 Criteria Ratings Pts Analyze accounts receivable and allowance 5 pts Adjusting entry 5 pts Balance sheet presentation 5 pts Total Points: 15 Analyze accounts receivable and allowance Comments Beginning balance + credit sales - sub total - cash receipts - write offs- ending balance, Allowance beginning + bad debt expense-write offs ending view longer description Adjusting entry view longer description Comments The journal entry is required to adjust allowance... not to record the ending balance of the allowance. You only needed a $65k adjustment JackJoe, Inc. sells toy mice to upscale pet stores. The company has a broad customer base, and routinely sells on credit. Annually, the company reviews and updates its allowance for uncollectible accounts. The company's accounting assumption is that XX.X% (select a collectible % from between 93.5% and 95.5%)of the end of year Accounts receivable balance will be collectible. Write- offs against the allowance account are made throughout the year when individual accounts are deemed to be uncollectible. Following are relevant facts for the current year: January 1, x1 balance in accounts receivable is $2,500,000 and Allowance for doubtful accounts is $110,000. JackJoe sold $10,000,000 of toy mice during the year on credit and collected $10,900,000 of cash. During X1, $100,000 of uncollectible accounts were written off against the allowance. Create an account analysis for both Accounts receivable and Allowance (a) for doubtful accounts. (5 points) (b) Prepare the yearend adjusting journal entry. (5 points) How will the accounts receivable and allowance appear on the Dec 31, (c) X1 Balance sheet? (5 points) Test 2: Question 2 Criteria Ratings Pts Analyze accounts receivable and allowance 5 pts Adjusting entry 5 pts Balance sheet presentation 5 pts Total Points: 15
