Analyzing and Reporting Receivable Transactions and Uncollectible Accounts (Using Percentage-of-Sales Method) At the beginning of...
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Analyzing and Reporting Receivable Transactions and Uncollectible Accounts (Using Percentage-of-Sales Method) At the beginning of 2017, Penman Company had the following (normal) account balances in its financial records: Accounts Receivable $125,000 Allowance for Uncollectible Accounts 8,900 During 2017, its credit sales were $1,173,000 and collections on credit sales were $1,150,000. The following additional transactions occurred during the year: Feb. 17 Wrote off Nissim's account, $3,600. May 28 Wrote off White's account, $2,400. Dec. 15 Wrote off Ohlson's account, $900. Dec. 31 Recorded the provision for uncollectible accounts at 0.8% of credit sales for the year. (Hint: The allowance account is increased by 0.8% of credit sales regardless of any prior write-offs.) Compute and show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31, 2017, balance sheet. Do not use negative signs with your answers. Accounts receivable Answer Less Allowance for uncollectible accounts Answer Accounts receivable, net
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