Question

On November 30, Windsor Party Planners had a $43,000 balance in Accounts Receivable and a $3,700 credit balance in Allowance for Uncollectible Accounts. During December, Windsor Party Planners made credit sales of $195,000. December collections on account were $164,000, and write-offs of uncollectible receivables totaled $2,820. Uncollectible-accounts expense is estimated as 1% of credit sales.

Requirements
1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required.
2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at December 31. How much does Windsor Party Planners expect to collect?
3. Show how Windsor Party Planners will report accounts receivable and net sales on its December 31 balance sheet and income statement for the month ended December 31.



$1.99
Sales5
Views326
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000