Beta Supply completed the following selected transactions during the year Jan
Beta Supply completed the following selected transactions during the year:
Jan 17 Sold inventory to Abe Gomez, $800 on account. Ignore cost of goods sold.
Jun 29 Wrote off Abe Gomez’s account as uncollectible after repeated efforts to collect from him.
Aug 6 Received $250 from Abe Gomez, along with a letter stating his intention to pay within 30 days. Reinstated Gomez’s account in full.
Sep 4 Received the balance due from Abe Gomez.
Dec 31 Made a compound entry to write off the following accounts as uncollectible: Brian Kemper, $1,000; Marie Montrose, $200; and Tanya Wayne, $900.
Dec 31 Based on an aging of accounts receivable, estimated uncollectible accounts as $2,600.
Requirements
1. Open T-accounts for Allowance for Doubtful Accounts and Bad Debt Expense. These accounts have beginning balances of $1,500 (Cr.) and 0, respectively.
2. Record the transactions in the journal, and post to the two T-accounts.
3. The December 31 balance of Accounts Receivable is $133,000. Show how Accounts Receivable would be reported on the balance sheet at that date.
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