Question

In: Accounting

Monique’s Trading Company balance sheet at December 31, 2016, reported the following: Accounts receivable...........................................$1,000,000 Allowance for...

Monique’s Trading Company balance sheet at December 31, 2016, reported the following:

Accounts receivable...........................................$1,000,000

Allowance for uncollectible accounts...................$33,330

The following are the transactions to be taken into consideration for 2017:

a.    Total credit sales for 2017 were $2,400,000.

b.    2% of sales were estimated to be uncollectible.

c.    The company received cash payments on account during 2017 for $900,000

d.   Accounts receivable identified to be uncollectible totaled $64,000.

e.   December 31, 2017, aging of receivables indicates that $72,000 of the

      receivables are uncollectible.

Requirements:

1. What was the net realizable value of the receivables as at December 31,2016

2. Prepare the journal entries for the company’s 2017 transactions.

3. Prepare the Accounts receivable and the Allowance for uncollectible

accounts T-accounts based on the information presented above. (Hint!!! The opening balances and the transactions from the journal entries must be recorded in their respective accounts)

4. What is the net realizable value of receivables as at December 31, 2017? (show workings)

Solutions

Expert Solution

1. What was the net realizable value of the receivables as at December 31,2016

Accounts receivable 10,00,000
Allowance for uncollectible accounts 33330
net realizable value 9,66,670

2. Prepare the journal entries for the company’s 2017 transactions.

DR CR
Account receivable 24,00,000
Sales 24,00,000
Bad debt Expense 48000
Allowance for Doubfull debt 48000
Cash 9,00,000
Account receivable 9,00,000
Allowance for Doubfull debt 64000
Account receivable 64000
Bad debt Expense 54,670
Allowance for Doubfull debt 54,670

3. Prepare the Accounts receivable and the Allowance for uncollectible

accounts T-accounts based on the information presented above.

Accounts receivable
Beg Balance 10,00,000 Cash received 9,00,000
credit sales 2400000 Allowance for uncollectible 64,000
End Balance 24,36,000
Allowance for uncollectible
Accounts receivable 64,000 Beg Balance 33330
Bad debt expense 54670
Bad debt expense 48,000
End Balance 72,000

4. What is the net realizable value of receivables as at December 31, 2017? (show workings)

Accounts receivable 24,36,000
Allowance for uncollectible 72,000
net realizable value of receivables 23,64,000

ekkarill92 answered 10 months ago
Next > < Previous

Related Solutions

Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible accounts...................$66,600 The following are the transactions to be taken into consideration for 2019: a. Total credit sales for 2019 were $3,600,000. b. 2% of sales were estimated to be uncollectible. c. The company received cash payments on account during 2019 for $1,000,000 d. Accounts receivable identified to be uncollectible totaled $94,000. e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible accounts...................$66,600 The following are the transactions to be taken into consideration for 2019: a. Total credit sales for 2019 were $3,600,000. b. 2% of sales were estimated to be uncollectible. c. The company received cash payments on account during 2019 for $1,000,000 d. Accounts receivable identified to be uncollectible totaled $94,000. e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables...
At December 31, 2016, House Co. reported the following information on its balance sheet. Accounts receivable...
At December 31, 2016, House Co. reported the following information on its balance sheet. Accounts receivable $950,100 Less: Allowance for doubtful accounts 78,300 During 2017, the company had the following transactions related to receivables. 1. Sales on account $3,729,700 2. Sales returns and allowances 50,300 3. Collections of accounts receivable 2,811,600 4. Write-offs of accounts receivable deemed uncollectible 88,100 5. Recovery of bad debts previously written off as uncollectible (b) Enter the January 1, 2017, balances in Accounts Receivable and...
Super Duper Company’s balance sheet at December 31, 2016, reported the following: Accounts receivable............................................................... $420,000 Less:...
Super Duper Company’s balance sheet at December 31, 2016, reported the following: Accounts receivable............................................................... $420,000 Less: Allowance for uncollectible accounts............................$8,400 Requirements: 1. What was the net realizable value of these receivables at December 31, 2016? 2. Journalize, without explanations, 2017 entries for Super Duper: a. Total credit sales for 2017 were $840,000; 4% of sales were estimated to be uncollectible. Super Duper received cash payments on account during 2017 of $520,000. b. Accounts receivable identified to be uncollectible totaled $26,000....
The December 31, 2016, balance sheet of the Kramer Company had Accounts Receivable of $650,000 and...
The December 31, 2016, balance sheet of the Kramer Company had Accounts Receivable of $650,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2017, the following transactions occurred: sales on account $1,550,000; sales returns and allowances, $100,000; collections from customers, $1,250,000; accounts written off, $35,000; previously written off accounts of $8,000 were collected. Journalize the 2017 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation...
At December 31, Gill Co. reported accounts receivable of $274,000 and an allowance for uncollectible accounts...
At December 31, Gill Co. reported accounts receivable of $274,000 and an allowance for uncollectible accounts of $1,500 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: $1,500. $1,240. $2,740. $950.
Kim and Kim Company’s balance sheet at December 31, 2017, reported the following: Accounts receivable............................................................... $2,000,000...
Kim and Kim Company’s balance sheet at December 31, 2017, reported the following: Accounts receivable............................................................... $2,000,000 Allowance for uncollectible accounts.....................................$20,000 DR Requirements: 1. What was the net realizable value of these receivables at December 31, 2017? 2. Journalize, without explanations, 2018 entries for Super Duper: a. Total credit sales for 2018 were $1,200,000; 2% of sales were estimated to be uncollectible. Super-Duper received cash payments on account during 2018 of $780,000. b. Accounts receivable identified to be uncollectible totaled $38,000....
As of December 31, 2020, Gill Co. reported accounts receivable of $226,000 and an allowance for...
As of December 31, 2020, Gill Co. reported accounts receivable of $226,000 and an allowance for uncollectible accounts of $8,600. During 2021, accounts receivable increased by $22,500, (that change includes $7,700 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for 2021 would be: Multiple Choice ·          $1,585. ·          $7,700. ·          $2,485. ·          None of these...
1. The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance...
1. The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. A.Prepare the journal entry for sales. B. Prepare the journal entry for collections. C. Prepare the...
Kim and Kim (K&K) Company’s balance sheet at December 31, 2017, reported the following Accounts receivable..................................................................
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.....................................$20,000 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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT