The September 30, 2019, records of First Data Communications include these accounts: (Click the icon to view the September 30, 2019 account balances.) During the last quarter of 2019, the company completed the following selected transactions: (Click the icon to view the selected transactions.) During the year, First Data Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in the Allowance for Uncollectible Accounts correspond to the following aging schedule. (Click the icon to view the Accounts Receivable balance and aging schedule to be used at December 31, 2019.) Read the requirements, Requirement 1. Record the transactions for the last quarter of 2019 in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Wrote off as uncollectible the $1,500 account receivable from Shade Carpets and the $800 account receivable from Old Timer Antiques. Journal Entry Date Accounts Debit Credit Nav 30 Adjusted the Allowance for Uncollectible Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables. Journal Entry Date Accounts Debit Credit Dec 31 Requirement 2. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from Requirement 1 to that account. Open the T-account by posting the beginning balance. Then post the entries to the Allowance for Uncollectible Accounts T-account and calculate the ending balance. Allowance for Uncollectible Accounts Requirement 3. Show how First Data Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company's Accounts Receivable balance was $210,000, and the Allowance for Uncollectible Accounts stood at $4,500. (Be sure to use the Accounts Receivable balance at December 31, 2019 given in the problem data.) First Data Communications Comparative Balance Sheet (partial) December 31, 2019 and 2018 2019 2018 Less: - x Data table At September 30, 2019: Accounts Receivable $ 250,000 Allowance for Uncollectible Accounts (8,200) More info Nov 30 Wrote off as uncollectible the $1,500 account receivable from Shade Carpets and the $800 account receivable from Old Timer Antiques. Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the aging of receivables. Dec 31 Accounts Receivable and aging schedule to be used at December 31, 2019 Age of Accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 138,000 $ 43,000 $ 14,000 $ 41,000 $236,000 Estimated percent uncollectible 0.2% 2% 15% 35% Requirements 1. Record the transactions for the last quarter of 2019 in the journal. Explanations are not required. 2. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account. 3. Show how First Data Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company's Accounts Receivable balance was $210,000, and the Allowance for Uncollectible Accounts stood at $4,500. (Be sure to use the December 31, 2019 aging schedule given in the problem data.)
