On September 30, Google Party Planners had a $40,000 balance in Accounts Receivable and a $3,000 credit

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On September 30, Google Party Planners had a $40,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During October, Google made credit sales of $100,000. October collections on account were $94,000, and write-offs of uncollectible receivables totaled $1,700. Uncollectible-account expense is estimated as 2% of revenue.

Required

1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during October. Explanations are not required.

2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at October 31. How much does Google expect to collect?

3. Show how Google will report Accounts Receivable on its October 31 balance sheet. Use the PepsiCo format on page 262.

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...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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