High Performance Cell Phones sold $23,000 of merchandise to Anthony Trucking Company on account. Anthony fell on
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Requirements
1. Journalize for High Performance:
a. Sale on account, $23,000. (Ignore cost of goods sold.)
b. Collection of $8,000 on account.
c. Write-off of the remaining portion of Anthony’s account receivable. High Performance uses the direct write-off method for uncollectibles.
d. Reinstatement of Anthony’s account receivable.
e. Collection in full from Anthony, $15,000.
2. Show how High Performance would report receivables on its balance sheet after all entries have been posted.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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