Sheffield Corp had record sales in 2020 It began 2020 with an Accounts Receivable balance of $500,000 and an Allowance for Doubtful Accounts of $35,000 Sheffield recognized credit sales during the year of $6,705,000 and made monthly adjusting entries equal to 0 5 of each months credit sales to recognize bad debt expense Also during the year, the company wrote off $35,300 of accounts that were deemed to be uncollectible, although one customer whose $4,700 account had been written off surprised management by paying the amount in full in late September Including this surprise receipt, $6,538,000 cash was collected on account in 2020 To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020 Days Account Outstanding Amount Probability of Collection Less than 16 days $353,200 97 Between 16 and 30 days 124,000 91 Between 31 and 45 days 76,000 80 Between 46 and 60 days 38,800 71 Between 61 and 75 days 19,800 51 Over 75 days 24,600 0 $636,400 Your answer is correct Reconcile the 2020 opening balance in Accounts Receivable to the $636,400 ending balance on the controllers aged listing Accounts Receivable Reconciliation Cash collected on accountCredit sales in yearEnding balanceOpening balanceAccounts written offReinstatement of account collected $ Cash collected on accountEnding balanceOpening balanceReinstatement of account collectedCredit sales in yearAccounts written off Reinstatement of account collectedCash collected on accountOpening balanceAccounts written offEnding balanceCredit sales in year Reinstatement of account collectedOpening balanceAccounts written offCash collected on accountEnding balanceCredit sales in year Cash collected on accountCredit sales in yearEnding balanceAccounts written offOpening balanceReinstatement of account collected Credit sales in yearOpening balanceCash collected on accountReinstatement of account collectedEnding balanceAccounts written off $ SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct Try again Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper balance at year end (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit Dec 31 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is incorrect Try again Show how accounts receivable would be presented on the December 31, 2020 statement of financial position Sheffield Corp Statement of financial position (Partial) $ AddLess (net) $ SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is incorrect Try again What is the dollar effect of the year end bad debt adjustment on the before tax income The year end bad debt adjustment would increasedecrease before tax income $

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Sheffield Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $500,000 and an Allowance for Doubtful Accounts of $35,000.

Sheffield Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $500,000 and an Allowance for Doubtful Accounts of $35,000. Sheffield recognized credit sales during the year of $6,705,000 and made monthly adjusting entries equal to 0.5% of each months credit sales to recognize bad debt expense. Also during the year, the company wrote off $35,300 of accounts that were deemed to be uncollectible, although one customer whose $4,700 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $6,538,000 cash was collected on account in 2020. To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020:

Days Account Outstanding	Amount	Probability of Collection
Less than 16 days	$353,200	97%
Between 16 and 30 days	124,000	91%
Between 31 and 45 days	76,000	80%
Between 46 and 60 days	38,800	71%
Between 61 and 75 days	19,800	51%
Over 75 days	24,600	0%
	$636,400


	Your answer is correct.

Reconcile the 2020 opening balance in Accounts Receivable to the $636,400 ending balance on the controllers aged listing.

Accounts Receivable Reconciliation
Cash collected on accountCredit sales in yearEnding balanceOpening balanceAccounts written offReinstatement of account collected		$
Cash collected on accountEnding balanceOpening balanceReinstatement of account collectedCredit sales in yearAccounts written off
Reinstatement of account collectedCash collected on accountOpening balanceAccounts written offEnding balanceCredit sales in year
Reinstatement of account collectedOpening balanceAccounts written offCash collected on accountEnding balanceCredit sales in year
Cash collected on accountCredit sales in yearEnding balanceAccounts written offOpening balanceReinstatement of account collected
Credit sales in yearOpening balanceCash collected on accountReinstatement of account collectedEnding balanceAccounts written off		$

SHOW LIST OF ACCOUNTS
LINK TO TEXT


	Your answer is partially correct. Try again.

Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper balance at year end. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts.)