The September 30, 2019, records of New York Communications include these accounts: Accounts Receivable.................................... $244,000 Allowance for
Question:
The September 30, 2019, records of New York Communications include these accounts:
Accounts Receivable.................................... $244,000
Allowance for Doubtful Accounts ................. (8,000)
During the year, New York Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule.
During the last quarter of 2019, the company completed the following selected transactions:
Requirements
1. Record the transactions for the last quarter of 2019 in the journal. Explanations are not required.
2. Prepare a T-account for Allowance for Uncollectible Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account.
3. Show how New York Communications will report its accounts receivable in a comparative balance sheet for 2018 and 2019. (Use the three-line reporting format.) At December 31, 2018, the company’s Accounts Receivable balance was $212,000, and the Allowance for Uncollectible Accounts stood at $4,300.
Balance SheetBalance 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...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.