Walton Case -
Walton Company began the year with Accounts Receivable of $12,625 and a normal balance in the Allowance for Uncollectible Accounts of $970. Cash sales during 2018 totaled $40,000 and credit sales totaled $183,000. There were sales returns and allowances during the year of $1,050. Collections from credit customers totaled $127,600. Charge-offs during the year totaled $580. On September 1, Anderson Company defaulted on a $1,000, 5%, 6-month note that was due on that day. An account receivable from John Brown for $1,700 was converted to a 4%, 60-day note on November 12. At year-end, Walton estimated that ½ of 1% of net credit sales would be uncollectible. The December 31 bank statement included a deduction for an NSF check for $155 that had been received from a customer, S. Stephens. Show your work as you answer these questions:
What amount did Anderson Company owe Walton on September 1?
What is the journal entry to record the NSF check?
What is net realizable value at December 31? (HINT: Draw 2 T-accounts!)
What is the adjusting entry related to uncollectible account expense?
If adjusting entries are recorded annually, what is the year-end accrual entry related to the Brown note? (Round to the closest dollar)
The maturity date of the Brown note is ___________. Write the entry required on that date.