The September 30, 2013, records of Up-To-Date Communications include these accounts: Accounts Receivable.................................... $243,000 Allowance for Doubtful

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The September 30, 2013, records of Up-To-Date Communications include these accounts:
Accounts Receivable.................................... $243,000
Allowance for Doubtful Accounts ............... (8,100)

During the year, Up-To-Date Communications estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), 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:

The September 30, 2013, records of Up-To-Date Communications inc

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 balances. Post the entries from Requirement 1 to that account.
3. Show how Up-To-Date Communications will report its accounts receivable in a comparative balance sheet for 2012 and 2013. Use the three-line reporting format. At December 31, 2012, the company€™s Accounts Receivable balance was $211,000, and the Allowance for Doubtful Accounts stood at$4,700.

Balance Sheet
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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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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