Monarch Map Company’s balance sheet at December 31, 2023, reported the following:

Requirements 

1. How much of the receivables did Monarch expect to collect? Stated differently, what was the net realizable value of these receivables? 

2. Journalize, without explanations, 2024 entries for Monarch and post to the Accounts Receivable and Allowance for Bad Debts T-accounts. 

a. Total credit sales for 2024 were $80,000 (ignore Cost of Goods Sold).

b. Monarch received cash payments on account during 2024 of $74,300.

c. Accounts receivable identified to be uncollectible totaled $2,700.

3. Record the adjusting entry to recognize bad debts expense using the following independent situations, and then post to the Bad Debts Expense and Allowance for Bad Debts T-accounts. 

a. 3% of credit sales were estimated to be uncollectible.

b. An aging of receivables indicates that $2,200 of the receivables are estimated to be uncollectible.

Transcribed Image Text:

Accounts Receivable Less: Allowance for bad debts $ 60,000 2,000