DEMONSTRATION PROBLEM

On February $28,$ Dylan Co$.$ had the following balances in select accounts:

Selected transactions for Dylan Co$.$ follow. Dylan's year end is June $30.$

Mar. $1$ Sold $\backslash (\backslash$$ $20,000\backslash )$ of merchandise to Potter Company, terms $\backslash (\backslash$mathrm$\{$n$\}/30\backslash ).$

$1$ Accepted Juno Company's $\backslash (\backslash$$ $16,500\backslash ),$ six$-$month, $\backslash (6\backslash \%\backslash )$ note for the balance due on account.

$11$ Potter Company returned $5600$ worth of goods.

$13$ Made Dylan Co$.$ credit card sales for $\backslash (\backslash$$ $13,200\backslash ).$

$30$ Received payment in full from Potter Company.

Apr. $13$ Received collections of $\backslash (\backslash$$ $8,200\backslash )$ on Dylan Co$.$ credit card sales. Added interest charges of $\backslash (18\backslash \%\backslash )$ to the remaining balance.

May $10$ Wrote off as uncollectible $\backslash (\backslash$$ $15,000\backslash )$ of accounts receivable.

June $30$ Estimated uncollectible accounts are determined to be $\backslash (\backslash$$ $20,000\backslash )$ at June $30.$

$30$ Recorded the interest accrued on the luno Cormpany note.

July $16$ Received payment in full, $54,000$ ; on an account that was previously written off in May.

Sept. $1$ Collected cash from $/$hno Company in paymen: of the March $1$ note receivable.

Instructions

$($a$)$ Prepare the journal entries for the transactions. Ignore cost of goods sold entries for purposes of this question.

$($b$)$ Open T accounts for Accounts Receivable and the Allowance for Doubtful Accounts, and post the relevant journal entries to these accounts. Calcuhte the balance in these accounts at June $30$ and at September $1.$

$($c$)$ Calculate the net realizable value of the accounts receivable at June $30$ and September $1.$