Lemon company uses the balance sheet/aging approach to estimate uncollectible accounts receivable. Based upon recent collection...

 

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Lemon company uses the balance sheet/aging approach to estimate uncollectible accounts receivable. Based upon recent collection history, Lemon's accountant has prepared an aging of accounts receivable as of December 31, 2019, and has estimated uncollectible accounts receivable of $81,250 as of that date -ie ending balance of Allowance for Doubtful Accounts (ADA). Additional facts needed for questions 1 and 2 below The balance in the allowance for doubtful accounts (ADA) on January 1, 2019 (beg, balance) was $38,500. Accounts written off during 2019 amounted to $3,500 m Instructions 1. Prepare the entry to record the write off of $3,500 during 2019 2. Prepare the adjusting entry to record the uncollectible accounts expense for 2019 (considering that the ending balance in ADA is $81,250 as mentioned above). 3. Determine the net accounts receivable (net realizable value) that will appear on Lemon's 12/31/19 balance sheet (statement of financial position), if the (gross) accounts receivable balance on that date was $725,000. Lemon company uses the balance sheet/aging approach to estimate uncollectible accounts receivable. Based upon recent collection history, Lemon's accountant has prepared an aging of accounts receivable as of December 31, 2019, and has estimated uncollectible accounts receivable of $81,250 as of that date -ie ending balance of Allowance for Doubtful Accounts (ADA). Additional facts needed for questions 1 and 2 below The balance in the allowance for doubtful accounts (ADA) on January 1, 2019 (beg, balance) was $38,500. Accounts written off during 2019 amounted to $3,500 m Instructions 1. Prepare the entry to record the write off of $3,500 during 2019 2. Prepare the adjusting entry to record the uncollectible accounts expense for 2019 (considering that the ending balance in ADA is $81,250 as mentioned above). 3. Determine the net accounts receivable (net realizable value) that will appear on Lemon's 12/31/19 balance sheet (statement of financial position), if the (gross) accounts receivable balance on that date was $725,000.

Answer rating: 100% (QA)

Q1 Journal entry Date 2019 Q2 Debtors Journal entry Date 31Dec19 Allowan... View the full answer