On September 30, Pendley Party Shop had a $56,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During October, the store made credit sales of $323,000. October collections on account were $257,000, and write-offs of uncollectible receivables totaled $3,600. Uncollectible-account expense is estimated as 3% of credit sales.

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 the store expect to collect?
3. Show how the store will report Accounts Receivable and net sales on its October 31 balance sheet and income statement for the month ended October 31.

  • CreatedJuly 25, 2014
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