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The following information is available for Quality Book Sales' sales on account and accounts receivable! Accounts receivable balance, January 1, Year 2 $ 78,500 Allowance
The following information is available for Quality Book Sales' sales on account and accounts receivable! Accounts receivable balance, January 1, Year 2 $ 78,500 Allowance for doubtful accounts, January 1, Year 2 4,710 Sales on account, Year 2 550,000 Collection on accounts receivable, Year 2 556,000 After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected Quality Book Sales estimates that 4 percent of the ending accounts receivable balance will be uncollectible. Required a. Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2 (2) Net realizable value of receivables at the end of Year 2 Amount of uncollectible accounts Net realizable value b. Record the general journal entries to (1) Record sales on account for Year 2 (2) Record cash collections from accounts receivable for Year 2 (3) Write off the accounts that are not collectible. (4) Record the estimated uncollectible accounts expense for Year 2 (If no entry is required for a transaction/event. Select "No journal entry required" in the first account field.) b. Record the general journal entries to: (1) Record sales on account for Year 2 (2) Record cash collections from accounts receivable for Year 2 (3) Write off the accounts that are not collectible. (4) Record the estimated uncollectible accounts expense for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
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