Analyzing Accounts Receivable

Instructions

Chart of Accounts

General Journal

Analysis

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Instructions

Upham Company’s June 30, 2016, balance sheet included the following information:

Upham Company

Partial Balance Sheet

June 30, 2016

1	Accounts Receivable	$229,000.00
2	Less: Allowance for Doubtful Accounts	(14,300.00)	$214,700.00
3	Notes Receivable		21,600.00
4	Total Receivables		$236,300.00
5	* The company has a recourse liability of $2,000 for notes receivable sold with recourse.

During the company’s fiscal year ending June 30, 2017, the following transactions occurred:

1.	Sales on credit	$870,000
2.	Collections of accounts receivable	840,200
3.	Accounts receivable written off as uncollectible	13,500
4.	Customer notes received in payment of accounts receivable	72,000
5.	Notes receivable collected	30,000
6.	Notes receivable, previously sold with recourse, were paid at maturity. The associated recourse liability for this note is $900.	35,500
7.	Notes receivable were defaulted	2,125
8.	Collections on accounts previously written off	500
9.	Bad debts were estimated to be 1.5% of credit sales

	Required:
1.	Prepare the journal entries necessary for Upham to record the preceding transactions.
2.	Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Upham’s June 30, 2017, balance sheet.

Answer rating: 100% (QA)

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