On 6/30/200X, the balance of Creative Softwares Accounts Receivable account in the general ledger was $8,450. The
Question:
On 6/30/200X, the balance of Creative Software’s Accounts Receivable account in the general ledger was $8,450. The following outstanding invoices made up the balance:
Date Customer Invoice Amount 2/28/200X Supply Warehouse 290 300.00 4/03/200X Dewey Law Offi ce 301 2,700.00 5/30/200X Custom Designs 319 1,650.00 6/05/200X Ontiveros Tax Consulting 322 800.00 6/22/200X Midtown Taxi Service 327 3,000.00 Creative Software’s policy is to write off specifi c customer accounts after 90 days if aggressive collection attempts do not succeed. So far Creative has not been able to collect on the outstanding accounts.
a. Journalize the adjustment for June 30, 200X.
b. Suppose that on June 30 the past-due customers made arrangements with Creative to pay the invoices over the next two months. Would you make an adjustment on June 30? Why or why not?
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