Analyzing Accounts Receivable Instructions Chart of Accounts General Journal Ana

Question

Analyzing Accounts Receivable

Instructions

Chart of Accounts

General Journal

Analysis

X

Instructions

Upham Company’s June 30, 2016, balance sheet included the following information:

Upham Company

Partial Balance Sheet

June 30, 2016

1

Accounts Receivable

$229,000.00

2

Less: Allowance for Doubtful Accounts

(14,300.00)

$214,700.00

3

Notes Receivable

21,600.00

4

Total Receivables

$236,300.00

5

* The company has a recourse liability of $2,000 for notes receivable sold with recourse.

During the company’s fiscal year ending June 30, 2017, the following transactions occurred:

Upham Company

Partial Balance Sheet

June 30, 2016

Explanation / Answer

(1).

S.No.

Accounts Title & Explanation

Debit

Credit

(1).

Account receivable

$870000

     Sales revenue

$870000

(For recording sales on account)

(2)

Cash

$840200

      Accounts receivable

$840200

(For recording cash collected from account receivables)

(3)

Allowance for Doubtful Accounts

$13500

      Accounts receivable

$13500

(For recording uncollectible written off)

(4)

Note receivable

$72000

     Accounts receivable

$72000

(For recording notes receivable from account receivable)

(5)

Cash

$30000

     Notes receivable

$30000

(For recording cash from notes receivable)

(6)

Recourse liability

$35500

     Loss on sale of receivables

$35500

(For recording recourse liability)

(7)

Notes receivable dishonored

$2125

     Cash

$2125

(for recording notes receivable dishonored)

(8)

Accounts receivable

$500

     Allowance for Doubtful Accounts

$500

(For reinstatement of accounts receivable)

Cash

$500

     Accounts receivable

$500

(For recording cash collected from previously written off)

(9)

Bad debt expense

$13050

     Allowance for Doubtful Accounts

$13050

(For recording estimated 1.5% bad debts)

(2).

Accounts Receivable

6 / 30 / 16 bal.

$229,000

Transaction 2

$840200

Transaction 1

$870000

Transaction 3

$13500

Transaction 8 (first entry)

$500

Transaction 4

$72000

Transaction 8 (second entry)

$500

6 / 30 / 17 bal.

$173300

Allowance for Doubtful Accounts

Transaction 3

$13500

6 / 30 / 16 bal.

$14300

Transaction 8 (First part)

$500

Transaction 9

$13050

6 / 30 / 17 bal.

$14350

Notes Receivable

6 / 30 / 16 bal.

$21600

Transaction 5

$30000

Transaction 4

$72000

6 / 30 / 17 bal.

$63600

Notes Receivable Dishonored

Transaction 7

$2125

6 / 30 / 17 bal.

$2125

S.No.

Accounts Title & Explanation

Debit

Credit

(1).

Account receivable

$870000

     Sales revenue

$870000

(For recording sales on account)

(2)

Cash

$840200

      Accounts receivable

$840200

(For recording cash collected from account receivables)

(3)

Allowance for Doubtful Accounts

$13500

      Accounts receivable

$13500

(For recording uncollectible written off)

(4)

Note receivable

$72000

     Accounts receivable

$72000

(For recording notes receivable from account receivable)

(5)

Cash

$30000

     Notes receivable

$30000

(For recording cash from notes receivable)

(6)

Recourse liability

$35500

     Loss on sale of receivables

$35500

(For recording recourse liability)

(7)

Notes receivable dishonored

$2125

     Cash

$2125

(for recording notes receivable dishonored)

(8)

Accounts receivable

$500

     Allowance for Doubtful Accounts

$500

(For reinstatement of accounts receivable)

Cash

$500

     Accounts receivable

$500

(For recording cash collected from previously written off)

(9)

Bad debt expense

$13050

     Allowance for Doubtful Accounts

$13050

(For recording estimated 1.5% bad debts)

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