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Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below: Wrote of 8440 account of Miller Company as uncollectible January 15 Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uneollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received 8741 from M. Fuller in full payment of his account which hud been written off earlier as uneollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 April 2 July 31 August 15 September 26 October 16 December 31 The accounts receivable account had a balance of $114.630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction. 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. You are now required to: a. Determine the amount to be charged to uneollectible expense (show your workings for the computation of this figure). b. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31

Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below: Wrote of 8440 account of Miller Company as uncollectible January 15 Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uneollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received 8741 from M. Fuller in full payment of his account which hud been written off earlier as uneollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 April 2 July 31 August 15 September 26 October 16 December 31 The accounts receivable account had a balance of $114.630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction. 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. You are now required to: a. Determine the amount to be charged to uneollectible expense (show your workings for the computation of this figure). b. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section: Chapter Questions
Problem 1AP
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Accounting for Assets: Receivables LET'S DISCUSS Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below: January 15 Wrote of 8440 account of Miller Company as uncollectible Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier April 2 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which hud been written off earlier as uncollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 July 31 August 15 September 26 October 16 December 31 The accounts receivable account had a balance of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction. 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. You are now required to: a. Determine the amount to be charged to uncollectible expense (show your workings for the computation of this figure). b. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31
Transcribed Image Text:Accounting for Assets: Receivables LET'S DISCUSS Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below: January 15 Wrote of 8440 account of Miller Company as uncollectible Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier April 2 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which hud been written off earlier as uncollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 July 31 August 15 September 26 October 16 December 31 The accounts receivable account had a balance of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction. 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. You are now required to: a. Determine the amount to be charged to uncollectible expense (show your workings for the computation of this figure). b. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31
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