ACC 201 week 3 Assignment 1

Accounts Receivable
 
Allowance for Doubtful Accounts
Beginning  Balance                        52,500
 
Beginning  Balance                          4,725
Sales on account.                         925,000
 
Uncoll. Acct. expense                      4,625
Collections on account               (835,000)
 
Write off of bad accts                   (3,100)
Write off of bad accts                    (3,100)
 
Balance                                            6,250
Balance                                      $139,400
 
 
 

         Accounts Receivable Balance, 12/31/12
$139,400
         Less: Allowance for Doubtful Accounts, 12/31/12
    *6,250*
         Net Realizable Value
$133,150
 

5-26 determining of account balances – percent of receivables allowance method of accounting for uncollectible accounts.

1. Service revenue $292,000 -  $57,400 receivable balance = $234,600

2. Receivable balance $57,400 x 4% of ending balance = $2,296

3. Receivable balance $57,400 - $2,296 ending balance= $55,104
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