The September 30, 2013, records of Media Communications include these accounts: Accounts Receivable.................................... $242,000 Allowance for Doubtful
Question:
Accounts Receivable.................................... $242,000
Allowance for Doubtful Accounts ............... (8,300)
During the year, Media Communications estimates doubtful-account expense at 1% of credit sales. At year-end, the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2013, the company completed the following selected transactions:
Requirements
1. Record the transactions in the journal. Explanations are not required.
2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balance. Post the entries from Requirement 1 to that account.
3. Show how Media Communications will report its accounts receivable in a comparative balance sheet for 2013 and 2012. Use the three-line reporting format. At December 31, 2012, the companys Accounts Receivable balance was $212,000, and the Allowance for Doubtful Accounts stood at$4,300.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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