Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's...

 

Transcribed Image Text:

Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below : January 15 April 2nd July 31 August 15 September 26 October 16 December 31 Wrote of $440 account of Miller Company as uncollectible. Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uncollectible the accounts. of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 The accounts receivable account had a balance. of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated. to be uncollectible. You are now required to: a. Determine the amount to be charged to uncollectible expense (show of this figure ). your workings for the computation Johnson company's financial year ended on December 31, 2010. All the transactions related to the company's uncollectible accounts are can be found below : January 15 April 2nd July 31 August 15 September 26 October 16 December 31 Wrote of $440 account of Miller Company as uncollectible. Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uncollectible the accounts. of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 The accounts receivable account had a balance. of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200. Required: 1. Prepare journal entries for each transaction 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account 3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable. 4. Assume that the aging of accounts receivable method was used by the company and that $7,050 of the accounts receivable as of December 31 were estimated. to be uncollectible. You are now required to: a. Determine the amount to be charged to uncollectible expense (show of this figure ). your workings for the computation

Answer rating: 100% (QA)

1Journal entries January 15 Date Accounts Debit Credit January 15 Bad Debt Expense 440 Allowance for ... View the full answer