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:


Requirements
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.
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  • CreatedApril 22, 2013
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