Question

Start with the beginning balances for these​ T-accounts: Accounts​ Receivable,

$ 102 comma 000$102,000​,

Allowance for Uncollectible​ Accounts,

$ 11 comma 000$11,000.

Post the following

20182018

transactions to the​ T-accounts:

a.	Service revenue of $ 704 comma 000$704,000​, all on account
b.	Collections on​ account, $ 718 comma 000$718,000
c.	​Write-offs of uncollectible​ accounts, $ 6 comma 000$6,000
d.	​Uncollectible-account expense​ (allowance method), $ 12 comma 000$12,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible​ Accounts?

Prepare the​ T-accounts for accounts receivable and allowance for uncollectible accounts. ​(Abbreviation used: Beg bal​ = Beginning ​ balance; End bal​ = Ending​ balance; Uncoll acct exp​ = Uncollectible account​ expense.)

Accounts Receivable

Allowance for Uncollectible Accounts

Requirement 3. Show how

Freeman and JonesFreeman and Jones

will report accounts receivable on its balance sheet at December​ 31,

20182018.

Less:

Answer 1

Calculation of Account Receivable ending balance

Account Receivable
Particular	Debit	Credit
Beg Bal	$ 102,000.00	$                  -
Sales on Account	$ 704,000.00	$                  -
Collections on Account	$                  -	$ 718,000.00
Written Off Un collectible Account	$                  -	$      6,000.00
Total	$ 806,000.00	$ 724,000.00
Ending Balance	$    82,000.00	$                  -

Calculation of Allowance for doubftful debt ending balance

Allowance for Doubtful Debt
Particular	Debit	Credit
Beg Bal	$              -	$ 11,000.00
Written Off Un collectible Account	$ 6,000.00	$                -
Uncollectible Account expense	$              -	$ 12,000.00
	$              -	$                -
Total	$ 6,000.00	$ 23,000.00
Ending Balance	$              -	$ 17,000.00

.

Account Receivable on it balance sheet at Dec 31, 2018 is as follows
Account Receivable	$    82,000.00
Less Allowance for doubtful debt	$ (17,000.00)
Net Account Receivable	$   65,000.00