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Recording and Reporting Accounts Receivable Transactions and Write-Offs Provided below is a chronological log of a...

Recording and Reporting Accounts Receivable Transactions and Write-Offs

Provided below is a chronological log of a sale on credit by Lumber Inc. to Anton.
Dec. 24, 2016—Sold merchandise to Anton, $2,000, terms 2/10, n/30.
Jan. 2, 2017—Anton paid half of the receivable and took the discount.
Dec. 31, 2019—Anton has failed to pay the receivable and Lumber Inc. wrote Anton’s account off as uncollectible.
Dec. 31, 2021—Anton unexpectedly paid its debt to Lumber Inc. in full, including 6% annual interest (not compounded, compute to the nearest month).

a. Prepare the entry(ies) that Lumber Inc. should make at each of the above dates (ignore any cost of goods sold entries). Record sales using the net method.

  • Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name.
Date Account Name Dr. Cr.
Dec. 24, 2016 Answer
Answer Answer
Answer
Answer Answer
Jan. 2, 2017 Answer
Answer Answer
Answer
Answer Answer
Dec. 31, 2019 Answer
Answer Answer
Answer
Answer Answer
Dec. 31, 2021 Answer
Answer Answer
Answer
Answer Answer
To reinstate accounts receivable.
Dec. 31, 2021 Answer
Answer Answer
Answer
Answer Answer
Answer
Answer Answer
To record cash collection.

b. Indicate how Anton's account receivable should be reported by Lumber Inc. at each December 31, its annual year-end.

Year-End Accounts Receivable,
Current
Dec. 31, 2016 Answer
Dec. 31, 2017 Answer
Dec. 31, 2018 Answer
Dec. 31, 2019 Answer
Dec. 31, 2020 Answer
Dec. 31, 2021 Answer

Please answer all parts of the question.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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