Provided below is a chronological log of a sale on credit by Lumber Inc. to Anton.
Dec. 24, 2016—Sold merchandise to Anton, $2,000, terms 2/10, n/30.
Jan. 2, 2017—Anton paid half of the receivable and took the discount.
Dec. 31, 2019—Anton has failed to pay the receivable and Lumber Inc. wrote Anton’s account off as uncollectible.
Dec. 31, 2021—Anton unexpectedly paid its debt to Lumber Inc. in full, including 6% annual interest (not compounded, compute to the nearest month).
a. Prepare the entry(ies) that Lumber Inc. should make at each of the above dates (ignore any cost of goods sold entries). Record sales using the net method.
- Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name.
| Date | Account Name | Dr. | Cr. |
|---|
| Dec. 24, 2016 | Answer |
| Answer | Answer |
| Jan. 2, 2017 | Answer |
| Answer | Answer |
| Dec. 31, 2019 | Answer |
| Answer | Answer |
| Dec. 31, 2021 | Answer |
| Answer | Answer |
| To reinstate accounts receivable. | | |
| Dec. 31, 2021 | Answer |
| Answer | Answer |
| To record cash collection. | | |
b. Indicate how Anton's account receivable should be reported by Lumber Inc. at each December 31, its annual year-end.
| Year-End | Accounts Receivable, |
|---|
| Current |
|---|
| Dec. 31, 2016 | Answer |
| Dec. 31, 2017 | Answer |
| Dec. 31, 2018 | Answer |
| Dec. 31, 2019 | Answer |
| Dec. 31, 2020 | Answer |
| Dec. 31, 2021 | Answer |
Please answer all parts of the question.
