Question: Pyle Nurseries used the allowance method to record the following

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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