b) What is the total realizable value of the receivables on March 31, 2017? c.)

Question

b) What is the total realizable value of the receivables on March 31, 2017?

c.) Using the information above, what entry should Hatcher make to record the estimated uncollectible amount using the Allowance method? Assume Hatcher already has 1,000 credit balance in its Allowance account.

d) Using the information above, what entry should Hatcher make to record the write-off of a $500 receivable?

e) Using the information above, what entry or entries will Hatcher make if it has a recovery of a $750 receivable that was previously written off?

ese aIiounts Month of Sale Amount Uncollectible % March February December and January November and October Total Receivables $65,000 12,600 10,100 7,400 $95 100 2% 7% 25% 60%

Explanation / Answer

a) Calculate total estimated uncollectible accounts :

b) Total realizable value = 95100-8407 = 86693

Journal entry :

Amount Uncollectible % Uncollectible amount March 65000 2% 1300 Feb 12600 7% 882 December and january 10100 25% 2525 November and october 7400 50% 3700 Total 95100 8407

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