Question

Pyle Nurseries used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20--:
Feb. 9 Received 60% of the $4,000 balance owed by Wiley's Waterworks, a bankrupt business, and wrote off the remainder as uncollectible.
May 28 Reinstated the account of Amanda Akin, which had been written off in the preceding year, and received $2,100 cash in full settlement.
Aug. 16 Wrote off the $5,700 balance owed by JoJo Xu as uncollectible.
Oct. 5 Reinstated the account of Tomi Kennedy which had been written off in the preceding year, and received $3,100 cash in full settlement.
Dec. 28 Wrote off the following accounts as uncollectible, in compound entry form: Jacobs & Wilson, $10,900; Specialty Landscapes, $15,360; Kiana Hoyer, $13,170. Based on an aging analysis of the $965,000 of accounts receivable, it was estimated that $50,800 will be uncollectible. Made the adjusting entry.
31 Made the entry to close the appropriate account to Income Summary.
31 Selected accounts and beginning balances on January 1, 20--, are as follows:


Required
1. Open the three selected general ledger accounts.
2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post to the appropriate selected accounts.
3. Determine the net realizable value as of December31.


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  • CreatedJune 07, 2014
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