Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. А. В. Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June. On 29 June, Toronto Ltd, whose $2400 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection. С. On 1 June, Canada Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts Receivable 1/6 Balance 849 555| Allowance for Doubtful Debts |1/6 Balance 12 100 During June, the following transactions occurred: Fees earned on credit, $1 195 000. Fees refunded, $24 100. Accounts receivable collected, $1 400 000. Accounts written off as uncollectable, $15 851. 1. 2. 3. 4. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13 500 on the balance sheet as at 30 June. Ignore GST.
Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. А. В. Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June. On 29 June, Toronto Ltd, whose $2400 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection. С. On 1 June, Canada Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts Receivable 1/6 Balance 849 555| Allowance for Doubtful Debts |1/6 Balance 12 100 During June, the following transactions occurred: Fees earned on credit, $1 195 000. Fees refunded, $24 100. Accounts receivable collected, $1 400 000. Accounts written off as uncollectable, $15 851. 1. 2. 3. 4. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13 500 on the balance sheet as at 30 June. Ignore GST.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.1: Uncollectible Accounts Receivable
Problem 1OYO
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Prepare general journal entries to record the four
transactions and to adjust the Allowance for Doubtful
Debts account.
A.
В.
Show how accounts receivable and the allowance
for doubtful debts would appear on the balance sheet
at 30 June.
С.
On 29 June, Toronto Ltd, whose $2400 account had
been written off as uncollectable in June, paid its
account in full. Prepare journal entries to record the
collection.
On 1 June, Canada Ltd had Accounts Receivable and
Allowance for Doubtful Debts accounts as below. Ignore
GST.
Accounts Receivable
1/6 Balance 849 555
Allowance for Doubtful Debts
|1/6 Balance 12 100
During June, the following transactions occurred:
1.
Fees earned on credit, $1 195 000.
Fees refunded, $24 100.
Accounts receivable collected, $1 400 000.
Accounts written off as uncollectable, $15 851.
2.
3.
4.
Based on an ageing of accounts receivable on 30 June,
the firm determined that the Allowance for Doubtful Debts
account should have a credit balance of $13 500 on the
balance sheet as at 30 June. Ignore GST.
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