Larry\'s License begin 2016 with Accounts Receivable Balance of $75,000.00 and A

Question

Larry's License begin 2016 with Accounts Receivable Balance of $75,000.00 and Allowance for Uncollectible Accounts $1,500.00. During the year Sales on Account were $350,000.00. Cash Collections totaled $295,000.00. A specific customers' account for $1,000.00 was written off during the year. At 12/31/2016, Larry determines that 12% of ending Accounts Receivable will not be paid due to the bad economy. Answer the following questions:

a. Record the Journal Entries for the year for Sales, Collections and Write-offs

b. What is the Journal Entry to record Estimated Bad Debt expense?

c. What is the ending balance in the Allowance for Uncollectible Accounts?

d. What is the Realizable value of Accounts receivable at 12/31/16?

Can anyone help with this accounting question?

Explanation / Answer

a.   Record the Journal Entries for the year for Sales, Collections and Write-offs

b.   What is the Journal Entry to record Estimated Bad Debt expense?

c.    What is the ending balance in the Allowance for Uncollectible Accounts?

d.   What is the Realizable value of Accounts receivable at 12/31/16?

JOURNAL Date Account Debit Credit Accounts Receivable 350000         Sales revenue 350000 Cash 295000        Accounts Receivable 295000 Allowance for uncollectible accounts 1000        Accounts Receivable 1000

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