Prospecting Supply Company of Edson completed the following transactions:

Additional Data as of 01/01/2013:

Required
a. Journalize the transactions.
b. Post to Allowance for Doubtful Accounts, Income Summary, or Bad Debts Expense as needed. (Be sure to record the beginning balance in the allowance account in your Study Guide with Working Papers.)
c. Prepare a current assets section of the balance sheet. Ending balances needed: Cash, $16,742; Accounts Receivable, $142,000; Office Supplies, $2,630; Merchandise Inventory, $107,000; Prepaid Rent, $3,500; and your calculated balance for Allowance for Doubtful Accounts.

Transcribed Image Text:

2013 Jan. Feb. Sold merchandise on account to May Expeditions, $4,160 Wrote off the account of Avery Fischer as uncollectible because of his death, $624. Received $600 from Maximum Co.; account had been writ- ten off in 2008. The account was reinstated and the collec- tion recorded Received 25% of the $6,400 owed by Airborne Surveys. The remainder was written off as uncollectible. The account of Hallicrafter Explorations was reinstated for $3,000 (amount received). The account was written off three years ago. Prepared a compound entry to write the following accounts off as uncollectible: Corbett Co., $275; Quark Co., $654; Lonely Expeditions, $247 Sold merchandise on account to Partridge Surveys, $4,280 Based on an aging of accounts receivable, it was estimated that $6,850 would be uncollectible out of a total of $142,000 in Accounts Receivable. Closed Bad Debts Expense to Income Summary. 8 19 Mar. 15 Apr. 5 July 19 Oct. 29 Nov. Dec. 14 31 31 Account No. Balance Dr./Cr Allowance for Doubtful Accounts Income Summary Bad Debts Expense $6,150 Cr-Jan. 1, 2013 1124 3100 6125 _