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Wilton, Co. used the allowance method to record the following selected transactions, adjusting entries and closing entries during the year ended December 31, 20--. The
Wilton, Co. used the allowance method to record the following selected transactions, adjusting entries and closing entries during the year ended December 31, 20--. The Beginning Accounts Receivable balance was $157,800 and the beginning Allowance for Doubtful Accounts Balance was $14,990 (credit) Feb. 9 May 28 Aug. 16 Oct. 15 Received 60% of the $7,500 balance owed by Vargus, Inc. a bankrupt business. Wrote off the remaining balance as uncollectable. Reinstated the account of Roderick Simmons, which had been written off during the preceding year. Received $2,400 plus $45.10 interest in full settlement of his account. Wrote off the $6,875 account balance owed by Rich Brown as uncollectable. Received a check for $2,545.00 from Bonnie McClellan as payment on her account. Bonnie's account with a balance of $3,250 was written off during the preceding year. Emery does not believe that the remaining balance is collectable. Received payment on account from the following customers: Baker and Associates, $1,347.45; Pat's Gardening, $5,987.00; Curt's Greenhouse, $896.87 and Newk's Fine Landscaping, $556.89 Wrote off the following accounts as uncollectible: Bloudeck & Rhodes, $14,345; Creative Landscapers, $5,789; Simon's seeds, $1,098.56. Based on an analysis of accounts receivable, it was determined 5.2% of the ending Accounts Receivable balance would be uncollectible. Compute the current Allowance for Doubtful Accounts balance before determining the required adjusting entry. Nov. 10 Dec. 28 Dec. 31 Required: 1. Record each of the above selected transactions in general journal form. Compute the Net Realizable Value of Accounts Receivable as of December 31. 2
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