The balance sheet of InSpace, Inc., a world leader in the design and sale of telescopic equipment,

Question:

The balance sheet of InSpace, Inc., a world leader in the design and sale of telescopic equipment, reported the following information on its balance sheets for 2014 and 2013 (figures are in thousands):

In 2014, InSpace recorded $16,500 in sales (all on account), of which $900 was returned for credit. InSpace offers its customers credit terms of 2/10, n/30. Seventy-five percent of collections on accounts receivable were made within the discount period. InSpace wrote off uncollectible accounts receivable in the amount of $130 during 2014.

Requirements
1. Compute the amount of uncollectible accounts expense recorded by InSpace in 2014.
2. Compute InSpaceâ€™s cash collections from customers in 2014.
3. Open T-accounts for Accounts Receivable and Allowance for Uncollectible Accounts.
Enter the beginning balances into each of these accounts. Prepare summary journal entries in the T-accounts to record the following for 2014:
a. Sales
b. Collections
c. Sales returns
d. Write-offs of uncollectible accounts
e. Uncollectible-AccountsExpense

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...