Question

The following information comes from the 2019 Annual Report of the Cola Company:
Accounts Receivable at 1/1/19 $ 3,141
Allowance for Uncollectible Acconts at 1/1/19 51
2019 Sales (assume all were on credit) 30,990
2018 Collections of cash from customers 30,289
Write off of Customer Accounts 22
2019 estimate of Uncollectible Accounts 26
Required:
Prepare t-accounts showing how the above activity flows through the Cola
Company's accounts. MAKE SURE TO SHOW THE ENDING BALANCE (Label "Balance"FOR EACH ACCOUNT)
Then answer the questions below the t-accounts.

5 t account chARTS

1 How much do Cola's customers owe the company as of 12/31/19?
2 How much does Cola expect NOT TO COLLECT from customers as of 12/31/19?
3 How much does Cola expect to collect from customers as of 12/31/19?

Answer 1

In the books of Cola company
		Accounts Receivable A/c
Date	Description	Amount	Date	Description	Amount
2019
Jan 01	Balance b/d	$   3,141.00	For 2019	Cash	$ 30,289.00
For 2019	Sales	$ 30,990.00	Dec 31	Allowance for uncollectible	$         22.00
			Dec 31	Balance c/d	$   3,820.00
		$ 34,131.00			$ 34,131.00
		Allowance for uncollectible A/c
Date	Description	Amount	Date	Description	Amount
2019			2019
Dec 31	Accounts Receivable	$         22.00	Jan-01	By Balance b/d	$         51.00
Dec 31	Balance c/d	$         55.00	Dec 31	Bad Debt	$         26.00
		$         77.00			$         77.00
		Bad Debt Expense A/c
Date	Description	Amount	Date	Description	Amount
2019			2019
Dec 31	Accounts for uncollectible	$         26.00	Dec 31	Balance c/d	$         26.00
		$         26.00			$         26.00

Answer 1-

Accounts receivable is the amount which is due for collecction by the company from its customers. The amount which Cola company's customer owe to company as of 31/12/2019 is $ 3820.00.

Answer 2 -

Allowance for uncollectible is amount whose collection is doubtful from its customer. Therefore, the amount which Cola company expect not to be collected as of 31/12/2019 is $ 55.00.

Answer 3-

The Actual amount which company can expect to get collected is the difference between amount of , Balance of accounts receivable and balance of allownace of uncollectible accounts.

Therefore, the company can expect to collect the following-

Balance of Accounts Receivable as on 31/12/2019	$             3,820.00
Less - Balance of Allowance for Uncollectible as of 31/12/2019	$                   55.00
		Net Receivables	$             3,765.00