Acc205 Principles of Accounting I: E8-15 At December 31, 2012, the Accounts receivable

Acc205 Principles of Accounting I

E8-15 Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet.
At December 31, 2012, the Accounts receivable balance of GPS Technology is $190,000. The Allowance for doubtful accounts has an $8,600 credit balance. GPS Technology prepares the following aging schedule for its accounts receivable:
Age of Accounts
1-30 Days 31-60 Days 61-90 Days Over 90 Days
Accounts Receivable 190,000 80,000 60,000 40,000 10,000
Estimated percent uncollectible 0.4% 5.0% 6.0% 50.0%

Requirements
1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule, Show the T-account for the Allowance for uncollectible accounts at December 31, 2012.
2. Show how GPS Technology will report its net Accounts receivable on its December 31, 2012 balance sheet.
Powered by