Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Requirement 1. Record the transactions in the journal and post to the Allowance for uncollectible accounts and Bad debt expense ledger accounts that have been
Requirement 1. Record the transactions in the journal and post to the Allowance for uncollectible accounts and Bad debt expense ledger accounts that have been opened for you. These accounts have beginning balances of $2,400 (cr.) and $0, respectively. Remember to update account balances but ignore posting references. Begin by recording the transactions in the journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan 17: Sold inventory to Paul Vane, $900 on account. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Jan 17 Jun 29: Wrote off the Paul Vane account as uncollectible after repeated efforts to collect from him. Journal Entry Date Accounts Debit Credit Jun 29 Aug 6: Received $150 from Paul Vane, along with a letter stating his intention to pay within 30 days. Reinstated his account in full. Begin by preparing the entry to reinstate the account. (Do not record the receipt of cash, this will be recorded in the next entry.) Journal Entry Date Accounts Debit Credit Aug 6 Now prepare the entry for the receipt of $150 from Paul Vane. Journal Entry Date Accounts Debit Credit Aug 61 Sep 4: Received the balance due from Paul Vane. Journal Entry Date Accounts Debit Credit Sep 4 Oct 31: Made a compound entry to write off the following accounts as uncollectible: Bill Kappy, $100; Tina Maynard, $800; and Silton Wayne, $700. Journal Entry Date Accounts Debit Credit Oct 31 Dec 31: Based on the aging of accounts receivable, estimated uncollectible accounts as $3,300. Journal Entry Date Accounts Debit Credit Dec 31 Now post to the Allowance for uncollectible accounts and Bad debt expense ledger accounts that have been opened for you. These accounts have beginning balances of $2,400 (cr.) and $0 respectively. Remember to update account balances but ignore posting references. (Post to the accounts in the same order as the journal entries prepared above, using the first available line on the debit or credit side of each T-account.) Allowance for uncollectible accounts Bad debt expense Beg Bal 2,400 Beg Bal 0 Requirement 2. The December 31 balance of Accounts receivable is $113,000. Show how Accounts receivable would be reported on the balance sheet at that date. (Complete all answer boxes.) Reliable Auto Parts, Inc. Balance Sheet (partial) December 31 Less: 1. Record the transactions in the journal and post to the Allowance for uncollectible accounts and Bad debt expense ledger accounts that have been opened for you. These accounts have beginning balances of $2,400 (cr.) and $0, respectively. Remember to update account balances but ignore posting references. 2. The December 31 balance of Accounts receivable is $113,000. Show how Accounts receivable would be reported on the balance sheet at that date. Jan 17 Jun 29 Aug 6 Sold inventory to Paul Vane, $900, on account. Ignore cost of goods sold. Wrote off the Paul Vane account as uncollectible after repeated efforts to collect from him. Received $150 from Paul Vane, along with a letter stating his intention to pay within 30 days. Reinstated his account in full. Received the balance due from Paul Vane. Made a compound entry to write off the following accounts as uncollectible: Bill Kappy, $100; Tina Maynard, $800; and Silton Wayne, $700. Based on an aging of accounts receivable, estimated uncollectible accounts as $3,300. Sep 4 Oct 31 Dec 31
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started