PQ
The following summary business activities were recorded in the third year of operations for Magenta Inc., a merchandising business in Ontario. Their yearend was December Year Record each of the business activities in the expanded accounting equation using account names.
Answer the questions that follow the chart.
Trans. # Description Amount
Opening Balances Accounts receivable, $
Allowance for Doubtful Accounts, $
Total sales during the year. Terms are n $
Products are returned by customers due to errors in shipping quantities or type of products. $
Cash collections of accounts receivable. $
Write off of accounts receivables that are determined to be uncollectable.
$
Two customers who were previously written off send in a cheque. $
The business estimates the uncollectable accounts receivable using the aging schedule, provided below.
Category Amount Estimated Uncollectable Estimated Allowance for Doubtful Accounts
Current
days overdue
days overdue
days overdue
Over days overdue
Total
