Question

The following selected transactions were taken from the records of Bingham Company for the year ended December 31, 2015:
Mar. 13. Wrote off account of H. Ballard, $4,200.
Apr. 19. Received $3,000 as partial payment on the $7,500 account of M. Rainey.
Wrote off the remaining balance as uncollectible.
Jul. 9. Received the $4,200 from H. Ballard, which had been written off on March 13. Reinstated the account and recorded the cash receipt.
Nov. 23. Wrote off the following accounts as uncollectible (record as one journal entry):
J. Shaw ....... $1,200
P. Newman ...... 750
Nichole Chan ...... 480
Dec. 31. The company prepared the following aging schedule for its accounts receivable:
a. Journalize the transactions for 2015 under the allowance method, assuming that the allowance account had a beginning balance of $12,000 on January 1, 2015, and the company uses the aging of receivables method.
b. Determine the net realizable value of accounts receivable as at December 31, 2015.


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  • CreatedSeptember 15, 2015
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