Question

Te September 30, 2015, records of Asher Communications include these accounts:
Accounts Receivable.................................... $473,000
Allowance for Doubtful Accounts............... (15,100)
During the year, Asher Communications estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule below.


During the last quarter of 2015, the company completed the following selected transactions:
Nov 30 Wrote off as uncollectible the $3,100 account receivable from Proctor Carpets and the $800 account receivable from Antiques on Austin.
Dec 31 Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables.

Requirements
1. Record the transactions for the last quarter of 2015 in the journal. Explanations are not required.
2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balance. Post the entries from Requirement 1 to that account.
3. Show how Asher Communications will report its accounts receivable in a comparative balance sheet for 2014 and 2015. Use the three-line reporting format. At December 31, 2014, the company’s Accounts Receivable balance was $408,000, and the Allowance for Doubtful Accounts stood at$9,700.


$1.99
Sales5
Views239
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000