Question

Upham Company’s June 30, 2016, balance sheet included the following information:
During the company’s fiscal year ending June 30, 2017, the following transactions occurred:
1. Sales on credit .................... $874,600
2. Collections of accounts receivable ............ 841,000
3. Accounts receivable written off as uncollectible ...... 13,800
4. Customer notes received in payment of accounts receivable .. 72,000
5. Notes receivable collected ................ 29,000
6. Notes receivable, previously sold with recourse,
were paid at maturity. The associated recourse
liability for this note is $800. .............. 36,000
7. Notes receivable were defaulted. ............. 2,025
8. Collections on accounts previously written off ...... 500
9. Bad debts were estimated to be 1.5% of credit sales.
Required:
1. Prepare the journal entries necessary for Upham to record the preceding transactions.
2. Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Upham’s June 30, 2017, balance sheet.


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  • CreatedOctober 05, 2015
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