The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.
The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.
Chapter5: Ethical Responsibilities Of Independent Auditors
Section5.6: Richard Grimes, Staff Accountant
Problem 1Q
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Part B
The company completed the following transactions during 2020.
- Jan 10 sold inventory to Natty Paul, $11,000, on account
- May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400
- August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible
- October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible.
- December 31, The Aging schedule showed an estimated $116,500 as uncollectible
Requirements:
- Prepare
journal entries for each transaction (No narrations required) - Prepare the Allowance for Uncollectible and the
Accounts Receivable accounts based on the information presented and balance off each account. - Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.
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