Mosaic's Company balance sheet as of December 31, 2018 reported the following: Accounts receivable............................... $2,500,000 Allowance for
Question:
Mosaic's Company balance sheet as of December 31, 2018 reported the following:
Accounts receivable............................... $2,500,000
Allowance for non-collectible accounts......$66,600
The transactions to be considered for 2019 are as follows:
A. Total credit sales for 2019 was $3,600,000.
B. It was estimated that 2% of sales were uncollectible.
A. The company received a cash payment of US$ 1,000,000 to its account in 2019.
D. The total of accounts receivable determined as uncollectible is $94,000.
to. As of December 31, 2019, aging of receivables shows that $75,000 of receivables is uncollectible.
Requirements:
1. What is the net realizable value of receivables as of 31 December 2018?
2. Prepare the journal entries for the company's 2019 transactions.
3. Prepare Accounts Receivable and Provision for Uncollectible Accounts T-accounts based on the information given above. (Note: Opening balances and transactions in journal entries must be posted to the relevant accounts)
4. What is the net realizable value of receivables as of 31 December 2019?
Expert Answer:
Answer 1 Current asset Accounts receivable 2500000 less Allowance for uncollectible accounts 66600 A... View the full answer
