Question

Kim and Kim (K&K) Company’s balance sheet at December 31, 2017, reported the following

Accounts receivable............................................................... $2,000,000

Allowance for uncollectible accounts.....................................$0.00 DR

Requirements:

1. What was the net realizable value of these receivables at December 31, 2017?

2. Journalize, without explanations, 2018 entries for Kim and Kim Company:

a. Total credit sales for 2018 were $1,200,000; 2% of sales were estimated to be uncollectible.

b. K&K Company received cash payments on account during 2018 of $780,000.

c. Accounts receivable identified to be uncollectible totaled $38,000.

d. December 31, 2018, the aging of receivables indicates that $43,000 of the receivables is uncollectible (target balance).

3. Post the transactions to the Accounts receivable and the Allowance for uncollectible accounts T-accounts. Calculate and report K&K’s receivables and related allowance on the December 31, 2018 balance sheet.

4. What is the net realizable value of receivables at December 31, 2018?

5. How much is the uncollectible account expense for 2018?

I need my values I wrotten here to remain the same please. also i would like the answers for all the questions because this isnone question

Answer 1

Answer-
1	Net Realisable value of Accoounts Receivable as at December 2017 is $2,000,000
2	General journal
	Sl no.	Description	Debit	Credit
	a	Accounts Receivable	$       12,00,000
		Sales		$       12,00,000
		(Being Credit Sale Recorded)
		Bad Debt Expense (12,00,000*2%)	$            24,000
		Allowance for Uncollectible Accounts		$            24,000
		(being reserve for 2% of total sale estimated to be uncollectible is recorded)
	b	Cash	$         7,80,000
		Accounts Receivable		$         7,80,000
		(being Cash Received on account)
	c	Allowance for Uncollectible Accounts	$            38,000
		Accounts Receivable		$            38,000
		(being bad debts occured)
	d	Bad Debt Expense	$            43,000
		Allowance for Uncollectible Accounts		$            43,000
		(being reserve created for uncollectible accounts)
3
	Accounts Receivable
	Date	Description	Amount(in $)	Date	Description	Amount(in $)
		Opening Balance	20,00,000		Cash	7,80,000
		Sales	12,00,000		Allowance for Doubtful Accounts	38,000
					Closing Balance	23,82,000
			32,00,000			32,00,000
	Allowance for Uncollectible Account
	Date	Description	Amount(in $)	Date	Description	Amount(in $)
					Opening Balance	-
		Accounts Receivable	38,000		Bad Debts expense	24,000
		Closing Balance	29,000		Bad Debts expense	43,000
			67,000			67,000
4	Net Realisable Value= Balance in Accounts Receivable account- Balance in Allowance for Uncollectible Account
		$23,82,000 - $29,000
		$23,53,000
5	Uncollectible Account Expense for year 2018 is $ 38,000