Question: Agency Supply completed the following selected transactions during 2012 Jan

Agency Supply completed the following selected transactions during 2012:
Jan 17 Sold inventory to Jim Haynes, $900 on account. Ignore cost of goods sold.
Jun 29 Wrote off Jim Haynes’s account as uncollectible after repeated efforts to collect from him.
Aug 6 Received $500 from Jim Haynes, along with a letter stating his intention to pay within 30 days. Reinstated Haynes’s account in full.
Sep 4 Received the balance due from Jim Haynes.
Dec 31 Made a compound entry to write off the following accounts as uncollectible:
Bernard Clark, $150; Marie Montrose, $250; and Teresa Walsh, $450.
Dec 31 Based on an aging of accounts receivable, estimated uncollectible accounts as $3,300.

1. Open T-accounts for Allowance for Uncollectible Accounts and Bad Debt Expense. These accounts have beginning balances of $1,700 (cr.) and 0, respectively.
2. Record the transactions in the journal and post to the two T-accounts; remember to update account balances but ignore posting references.
3. The December 31 balance of Accounts Receivable is $139,000. Show how Accounts Receivable would be reported on the balance sheet at that date.

  • CreatedApril 29, 2014
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