{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

UCB+UGBA102A+Topic05+Slides+Appendix

# UCB+UGBA102A+Topic05+Slides+Appendix - Cash Receivables...

This preview shows pages 1–5. Sign up to view the full content.

Cash, Receivables & Payables UGBA102A Introduction to Financial Accounting Appendix

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
UGBA102A Dennis Geyer 2 Review Problem 7 JPG Company sells merchandise on account to its customers. During the year ended December 31, the company had net sales of \$800,000. At the end of the year, it had accounts receivable of \$220,000 and a debit balance in allowance for uncollectible accounts of \$3,100. In the past, approximately 2.0% of net sales have been uncollectible. Also, an aging analysis of accounts receivable revealed that \$12,000 appear to be uncollectible. Compute Uncollectible Accounts Expense and determine the ending balance of Allowance for Uncollectible Accounts and Accounts Receivable (net) under (a) the Percentage of Net Sales Method, and (b) the Accounts Receivable Aging Method.
UGBA102A Dennis Geyer 3 Review Problem 7 (a) Percentage of Net Sales Method Uncollectible Accounts Expense = 2% x \$800,000 = \$16,000 Allowance for Uncollectible Accounts = \$16,000 - \$3,100 = \$12,900 Accounts Receivable, net = \$220,000 - \$12,900 = \$207,100

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
UGBA102A Dennis Geyer 4 Review Problem 7 (b) Accounts Receivable Aging Method
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 9

UCB+UGBA102A+Topic05+Slides+Appendix - Cash Receivables...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online