Brief Exercise 5-47 Aging Method Spotted Singer Ltd. sells karaoke machines to businesses and consumers via the Internet. On December 31, 2021, Spotted Singer has an accounts receivable balance of $997,000 and a credit balance in its allowance for doubtful accounts of $24,000. During 2022, Spotted Singer had $2,500,000 of credit sales, collected $1,725,000 of accounts receivable, and had customer defaults of $45,000. At year-end, an aging analysis indicates that $28,000 of Spotted Singer's receivables will be uncollectible. Required: 1. Calculate Spotted Singer's balance in accounts receivable on December 31, 2022, prior to the adjustment. 2. Calculate Spotted Singer's balance in allowance for doubtful accounts on December 31, 2022, prior to the adjustment. 3. Prepare the necessary adjusting entry for 2022.
Brief Exercise 5-47 Aging Method Spotted Singer Ltd. sells karaoke machines to businesses and consumers via the Internet. On December 31, 2021, Spotted Singer has an accounts receivable balance of $997,000 and a credit balance in its allowance for doubtful accounts of $24,000. During 2022, Spotted Singer had $2,500,000 of credit sales, collected $1,725,000 of accounts receivable, and had customer defaults of $45,000. At year-end, an aging analysis indicates that $28,000 of Spotted Singer's receivables will be uncollectible. Required: 1. Calculate Spotted Singer's balance in accounts receivable on December 31, 2022, prior to the adjustment. 2. Calculate Spotted Singer's balance in allowance for doubtful accounts on December 31, 2022, prior to the adjustment. 3. Prepare the necessary adjusting entry for 2022.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 47BE: Percentage of Credit Sales Method Ruby Red manufactures, markets, and distributes citrus flavored...
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![Brief Exercise 5-47
Aging Method
Spotted Singer Ltd. sells karaoke machines to businesses and consumers via the Internet. On December 31, 2021, Spotted Singer has an accounts receivable balance of
$997,000 and a credit balance in its allowance for doubtful accounts of $24,000. During 2022, Spotted Singer had $2,500,000 of credit sales, collected $1,725,000 of accounts
receivable, and had customer defaults of $45,000. At year-end, an aging analysis indicates that $28,000 of Spotted Singer's receivables will be uncollectible.
Required:
1. Calculate Spotted Singer's balance in accounts receivable on December 31, 2022, prior to the adjustment.
2. Calculate Spotted Singer's balance in allowance for doubtful accounts on December 31, 2022, prior to the adjustment.
3. Prepare the necessary adjusting entry for 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dbaf000-86b8-47f9-ac8c-1663b76519f3%2Ffa49025c-234e-45ad-8b9b-fe0fd0637aec%2Fdrvc4mw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 5-47
Aging Method
Spotted Singer Ltd. sells karaoke machines to businesses and consumers via the Internet. On December 31, 2021, Spotted Singer has an accounts receivable balance of
$997,000 and a credit balance in its allowance for doubtful accounts of $24,000. During 2022, Spotted Singer had $2,500,000 of credit sales, collected $1,725,000 of accounts
receivable, and had customer defaults of $45,000. At year-end, an aging analysis indicates that $28,000 of Spotted Singer's receivables will be uncollectible.
Required:
1. Calculate Spotted Singer's balance in accounts receivable on December 31, 2022, prior to the adjustment.
2. Calculate Spotted Singer's balance in allowance for doubtful accounts on December 31, 2022, prior to the adjustment.
3. Prepare the necessary adjusting entry for 2022.
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