Given the information presented in Figure 13.13 , do the following: Aging of Accounts Receivable for Masso

Question:

Given the information presented in Figure 13.13 , do the following:

Aging of Accounts Receivable for Masso Co.

1. Prepare on December 31, 2018, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $32,000; Accounts Receivable, $152,000; Allowance for Doubtful Accounts, $260; Merchandise Inventory, $12,000. The company uses the allowance method and the balance sheet approach.

2. Prepare a partial balance sheet on December 31, 2018, showing how net realizable value is calculated.

3. If the balance in the Allowance for Doubtful Accounts were a $260 debit balance, journalize the adjusting entry for Bad Debts Expense on December 31, 2018.

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...

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