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The October 1, 2020, records of Fast Communications include these accounts: Accounts Receivable $ 245,000 (8,600) Allowance for Uncollectible Accounts At year-end, the company ages
The October 1, 2020, records of Fast Communications include these accounts: Accounts Receivable $ 245,000 (8,600) Allowance for Uncollectible Accounts At year-end, the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the aging schedule During the last quarter of 2020, the company completed the following selected transactions (Click the icon to view the transactions.) Requirements Requirement 1. Record the write-off of uncollectible accounts in the journal. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Nov Next, record the 60-day note receivable Journal Entry Date Accounts Debit Credit Dec Now, record the bad debt expense in the journal Journal Entry Date Accounts Debit Credit Dec Requirement 2. Prepare a T-account for Accounts Receivable and the Allowance for Uncollectible Accounts and post to those accounts Open the T-account by posting the beginning balance. Then post the entries to the Allowance for Uncollectible Accounts T-account and compute the ending balance (Leave any unused cells blank.) Accounts Receivable Allowance for Uncollectible Accounts Requirement 3. Show how Fast would report its accounts receivable on a comparative balance sheet for 2019 and 2020. At December 31, 2019, the company's Accounts Receivable balance was $206,000 and the Allowance for Uncollectible Accounts stood at $4,700. (Use parentheses or a minus sign for numbers to be subtracted. Enter "0" for any accounts with a $0 balance.) Fast Communications Comparative Balance Sheet (partial) December 31, 2020 2020 2019 Transactions 2020 Nov. 30 Wrote off as uncollectible the $2,000 account receivable from Blue Carpets and the $500 account receivable from Johnson Antiques Dec. 31 One of its customers, Tiffany Ltd., agreed to sign a 60-day note receivable to replace the $1,300 accounts receivable due on that day. Dec. 31 Adjusted the Allowance for Uncollectible Accounts and recorded Bad Debt Expense at year-end, based on the aging of receivables, which follows Age of Accounts 0 - 30 31 - 60 61 - 90 Over 90 Total Balance Days Days Days Days $245,000 $ 151,000 $ 35,000 $ 21,000 $ 38,000 Estimated uncollectible 0.2% 0.5% 5.0% 30%
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