Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information is available for Quality Book Sales sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 $79,000 Allowance for
The following information is available for Quality Book Sales sales on account and accounts receivable:
Accounts receivable balance, January 1, Year 2 | $79,000 |
---|---|
Allowance for doubtful accounts, January 1, Year 2 | 4,810 |
Sales on account, Year 2 | 555,000 |
Collection on accounts receivable, Year 2 | 561,000 |
After several collection attempts, Quality Book Sales wrote off $2,900 of accounts that could not be collected. Quality Book Sales estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Required
- 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.
- 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.
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