The trial balance of M&D Inc. shows a $50,000 outstanding balance in accounts receivable at the end

Question:

The trial balance of M&D Inc. shows a $50,000 outstanding balance in at the end of the first year of operations, December 31, 2011. During the fiscal year, 75% of the total credit sales were collected and no accounts were written off as uncollectible. The company estimated that 1.5% of the credit sales would be uncollectible. During the following year, 2012, the account of J. Morgan, who owed $500, was judged uncollectible and was written off. At the end of the year, on December 31, 2012, the amount previously written off was collected in full from J. Morgan.
Required:
a. Prepare the necessary journal entries for recording all the preceding transactions in the accounting system of M&D Inc.
b. Show the section of the at December 31, 2011. 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
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