An analysis of the accounts receivable balance of $8,702 on the records of Jorgenson, Inc., on December

Question:

An analysis of the balance of $8,702 on the records of Jorgenson, Inc., on December 31 reveals the following:
Accounts from sales of last three months
(appear to be fully collectible) . . . . . . . . . . . . . . . . . $7,460
Accounts from sales prior to October 1
(of doubtful value) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,312
Accounts known to be worthless. . . . . . . . . . . . . . . . 320
Dishonored notes charged back to customers’
accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800
Credit balances in customers’ accounts . . . . . . . . . . . 1,190
(a) What adjustments are required?
(b) How should the various balances be shown on the balance sheet?

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...