In this problem, we continue our accounting for Aqua Elite, Inc. from Chapter 6. Refer to the

Question:

In this problem, we continue our accounting for Aqua Elite, Inc. from Chapter 6. Refer to the Continuing Problem in Chapters 5 and 6. Assume that all 13 of the spas Aqua Elite, Inc. sold in September were sold on account for $4,000 each. At September 30, Aqua Elite, Inc. estimates that 5% of the sales will not be collected.

Requirements

1. Calculate the ending balance in Accounts Receivable at September 30.

2. Journalize the entry to record Aqua Elite’s Bad Debt Expense for September.

3. How will Accounts Receivable be reflected on Aqua Elite’s balance sheet at September 30?

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
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...