Question: At December 31 2012 before any year end adjustments the Accounts Receivable

At December 31, 2012, before any year-end adjustments, the Accounts Receivable balance of TM Manufacturing is $130,000. The Allowance for Doubtful Accounts has a $8,000 credit balance. TM Manufacturing prepares the following aging schedule for Accounts Receivable:

1. Based on the aging of Accounts Receivable, is the unadjusted balance of the Allowance account adequate? Too high? Too low?
2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.
3. Show how TM Manufacturing will report Accounts Receivable on its December 31 balancesheet.

Sale on SolutionInn
  • CreatedApril 22, 2013
  • Files Included
Post your question