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12/31/17 Co estimates 4% of its outstanding $300,000 in receivables will be uncollectable. ADA already has...

12/31/17 Co estimates 4% of its outstanding $300,000 in receivables will be uncollectable. ADA already has a credit balance of $1000.

  1. Make the JE to record estimated uncollectable receivables.
  1. On 1/31/18 $2000 of receivables is determined to be uncollectable. Make JE.
  1. What is ADA balance 2/1/18?
  1. What are net (or cash) receivables on 2/1/18?
  1. Are the two net receivable figures, from both before and after 1/31 write off different in value? Why or why not?
  1. On 2/3/18 Co learns the $2000 it had written off is now paid in full.
  1. 2/15/18 Co sells $100,000 of receivables to Factor Co at a 5% service charge.
  1. 3/3/18 Co sells $1000 of goods to customer who paid with Visa or Mastercard where the card company charges 5% fee.
  1. Co accepts a $10,000 Note in settlement from a customer who already owes Co $10,000.

Please answer all parts thank you.

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Expert Solution

ekkarill92 answered 2 years ago
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