The following information is available for Quality Book Sales sales on account and accounts receivable:...
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Accounting
The following information is available for Quality Book Sales sales on account and accounts receivable:
Accounts receivable balance, January 1, Year 2
$78,600
Allowance for doubtful accounts, January 1, Year 2
4,730
Sales on account, Year 2
551,000
Collection on accounts receivable, Year 2
557,000
After several collection attempts, Quality Book Sales wrote off $2,800 of accounts that could not be collected. Quality Book Sales estimates that 4 percent of the ending accounts receivable balance will be uncollectible.
Required
Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
Record the general journal entries to:
(1) Record sales on account for Year 2.
(2) Record cash collections from accounts receivable for Year 2.
(3) Write off the accounts that are not collectible.
(4) Record the estimated uncollectible accounts expense for Year 2.
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