Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 10

Accounting for uncollectible accounts using the allowance method (percentage of sales), and reporting receivables on the balance sheet
Quality Watches completed the following selected transactions during 2012 and 2013:

Requirements
1. Open T-accounts for Allowance for uncollectible accounts and Uncollectible account expense. Keep running balances, assuming all accounts begin with a zero balance.
2. Record the transactions in the general journal, and post to the two T-accounts.
3. Assume the December 31, 2013, balance of Accounts receivable is $135,000. Show how net Accounts receivable would be reported on the balance sheet at that date. Use the three line format of reporting the net accounts receivable.