Learning Task 2: Classify the following accounts into the five major account categories. On the space provided before each number, write A for asset, L for liability, OE for owner's equity, R for revenue, and E for cost and expense. For contra accounts, enclose your answer in parenthesis. 6. Freight In 1. Salaries payable 2. Interest Income 7. Sales returns & allowances 8. Purchase Discount 3. Doubtful Account Expense 4. Prepaid Insurance Expense 5. Owner's Drawing 9. Interest Expense 10. Unearned Sales Commissions

Learning Task 2: Classify the following accounts into the five major account categories. On the space provided before each number, write A for asset, L for liability, OE for owner's equity, R for revenue, and E for cost and expense. For contra accounts, enclose your answer in parenthesis. 6. Freight In 1. Salaries payable 2. Interest Income 7. Sales returns & allowances 8. Purchase Discount 3. Doubtful Account Expense 4. Prepaid Insurance Expense 5. Owner's Drawing 9. Interest Expense 10. Unearned Sales Commissions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.
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