Question

On October 31, 2012, the Accounts Receivable balance of TM Manufacturing is $256,000. The Allowance for Uncollectible Accounts has a $3,900 credit balance. TM prepares the following aging schedule for its accounts receivable:


Requirements
1. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on October 31, 2012.
2. Assume that instead of a $3,900 credit balance, there is an $800 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on October 31, 2012.



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  • CreatedApril 29, 2014
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