Wilson Leather Products sells leather clothing at both wholesale and retail. The company has found that there is a higher rate of uncollectible accounts from retail credit sales than from wholesale credit sales, Wilson computes its estimated loss from uncollectible accounts at the end of each year. The amount is based on the rates of loss that the firm has developed from experience for each division A separate computation is made for each of the two types of sales. The firm uses the percentage of net credit sales method As of December 31, 20X1, Accounts Receivable has a balance of $401.000, and Allowance for Doubtful Accounts has a debit balance of $416. The following table provides a breakdown of the net credit sales for the year 20X1 and the estimated rates of loss: Category Wholesale Retail Amount $ 2,130,000 594.ee Estimated Rate of Loss 0.5% 1.2 Required: 1. Compute the estimated amount of uncollectible accounts expense for each of the two categories of net credit sales for the year, 2. Prepare an adjusting entry in general journal form to provide for the estimated uncollectible accounts on December 31, 20x1 Use Uncollectible Accounts Expense 3. Show how Accounts Receivable and Allowance for Doubtful Accounts should appear on the balance sheet of Wilson Leather Products as of December 31, 20X1. 4. On January 20, 20X2, the account receivable of Columbus Clothiers, amounting to $920, is determined to be uncollectible and is to be written off. Record this transaction in the general Journal Wholesale Retail $2,130,eee 594, eee 0.5% 1.2 Required: 1. Compute the estimated amount of uncollectible accounts expense for each of the two categories of net credit sales for the year. 2. Prepare an adjusting entry in general Journal form to provide for the estimated uncollectible accounts on December 31, 20x1 Use Uncollectible Accounts Expense. 3. Show how Accounts Receivable and Allowance for Doubtful Accounts should appear on the balance sheet of Wilson Leather Products as of December 31, 20X1. 4. On January 20, 20x2, the account receivable of Columbus Clothiers, amounting to $920, is determined to be uncollectible and is to be written off. Record this transaction in the general Journal 5. On November 26, 20x2, the attorneys for Wilson turned over a check for $920 that they obtained from Columbus Clothiers in settlement of its account, which had been written off on January 20 The money has already been recorded in the cash receipts Journal, Give the general journal entry to reverse the original write-off Analyze: Compute the net accounts receivable amount that should be reported in the financial statements for the year ended December 31, 20X1 Analyze: Compute the net accounts receivable amount that should be reported in the financial statements for the year ended December 31, 20x1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Analyze Compute the estimated amount of uncollectible accounts expense for each of the two categories of net credit sales for the year. Wholesale Rotail Total $ 0 Required: Required 2 > Journal entry worksheet Record the journal entry to record the provision for estimated uncollectible accounts. Use Uncollectibe Accounts Expense. Note: Enter debits before credits General Journal Debit Credit Date Dec. 31 Recordanta Cloacanta Vienellioual Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Analyze Show how Accounts Receivable and Allowance for Doubtful Accounts should appear on the balance sheet of Wilson Leather Products as of December 31, 20x1. WILSON LEATHER PRODUCTS Balance Sheet (Partial) December 31, 20X1 Net accounts receivable Journal entry worksheet 1 Record entry to write off account determined to be uncollectible. Note: Enter debits before credits Date Jan. 20 General Journal Debit Credit Journal entry worksheet Record entry to reverse Jan. 20 entry, writing off the account which was collected in full today. Note: Enter debits before credits. General Journal Debit Credit Date Nov. 26 Compute the net accounts receivable amount that should be reported in the financial statements for the year ended December 20x1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Analyze Compute the net accounts receivable amount that should be reported in the financial statements for the year ended December 31, 20x1. Net accounts receivable
