Question: Using the information provided for United Corp, and answer the questions that follow. United Corp. sells merchandise only on credit. For the year ended December

Using the information provided for United Corp, and answer the questions that follow. United Corp. sells merchandise only on credit. For the year ended December 31, 2019, the following data is available: Questions 6-9 are based on the accounts receivable method. Sales revenue Sales returns & allowances Accounts receivable, 1/1/19 Allowance for doubtful accounts Credit bal. 12/31/19 (Before adjustment bad debts) Collections during 2019 Accounts written off as uncollectible during 2019 $2,400,000 60,000 270,000 1,900 2,426,300 23,700 9. Prepare the partial balance sheet at December 31, 2019, and show the net realizable value of accounts receivable assuming % of accounts receivable method. A) Accounts Receivable $270,000 Less: Allowance for Doubtful Accounts 20,000 Net Realizable Value $250,000 B) Accounts Receivable $300,000 Less: Allowance for Doubtful Accounts 14,100 Net Realizable Value $285,900 $160,000 Accounts Receivable Less: Allowance for Doubtful Accounts Net Realizable Value 16.000 $144,000 $140,000 17.900 $122,100 Accounts Receivable Less: Allowance for Doubtful Accounts Net Realizable Value
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
