Question

The September 30, 2015, records of Foglemann Communications include these accounts:
Accounts Receivable.................................... $462,000
Allowance for Doubtful Accounts............... (15,300)


During the year, Foglemann Communications estimates doubtful-account expense at 1% of credit sales. At year-end, the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule.
During the last quarter of 2015, the company completed the following selected transactions:
Nov 30 Wrote off as uncollectible the $2,500 account receivable from Frisco Carpets and the $900 account receivable from Antiques on the Avenue.
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 Foglemann Communications will report its accounts receivable in a comparative balance sheet for 2015 and 2014. Use the three-line reporting format.
At December 31, 2014, the company’s Accounts Receivable balance was $432,000 and the Allowance for Doubtful Accounts stood at$7,300.


$1.99
Sales1
Views65
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000