Okay Optical, Incorporated OOI began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations.
January Sold merchandise to Walgreens for $; the cost of these goods to OOI was $
February Received payment in full from Walgreens.
March Sold merchandise to Bravis Pharmaco on account for $; the cost of these goods to OOI was $
April Sold merchandise to Tonys Pharmacy on account for $ The cost to OOI was $
May Sold merchandise to Anjuli Stores on account for $; the cost to OOI was $
June Received $ on account from Tonys Pharmacy.
Required:
Complete the following aged listing of customer accounts at June
Estimate the Allowance for Doubtful Accounts required at June assuming the following uncollectible rates: one month, percent; two months, percent; three months, percent; more than three months, percent.
a Show how OOI would report its accounts receivable on its June balance sheet.
b What amounts would be reported on an income statement prepared for the sixmonth period ended June
