Question: This is needed in excel:
Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method.
For the most recent year give general journal entries for the following.
Beginning of the year balances:(No journal entries needed for beg. Balances)
Accounts Receivable 511,212
Allowance for uncollectible accounts 9,690
Uncollectible Accounts Expense -
1 Sales for the year were 1,662,000. 75% of sales are credit sales
2 Collection on credit sales for the year were 970,000
3 Wrote off 8300 of specific customer accounts
4a At year end estimate uncollectible accts to be 1.75% of credit sales
4b Instead of 4a, the company ages it receivables and estimated 7200 as uncollectible