Chancellor Company began 2013 with balances in accounts receivable and allowance for doubtful accounts of $88,600 and $3,350, respectively. The company reported credit sales of $980,500 during the year, and wrote off $2,800 of uncollectible accounts. Chancellor Company prepared the following aging schedule on December 31, 2013: Required:
a) Prepare general journal entries to record the 2013 credit sales, collection of accounts receivable, write-off of uncollectible accounts, and estimate of uncollectible accounts.
b) What is Chancellor Company's net realizable value of receivables after all of the above entries have been made?

Question

Chancellor Company began 2013 with balances in accounts receivable and allowance for doubtful accounts of $88,600 and $3,350, respectively. The company reported credit sales of $980,500 during the year, and wrote off $2,800 of uncollectible accounts. Chancellor Company prepared the following aging schedule on December 31, 2013:  Required:
a) Prepare general journal entries to record the 2013 credit sales, collection of accounts receivable, write-off of uncollectible accounts, and estimate of uncollectible accounts.
b) What is Chancellor Company's net realizable value of receivables after all of the above entries have been made?

Quizplus · Accepted Answer

The Answer of Chancellor Company began 2013 with balances in accounts receivable and allowance for doubtful accounts of $88,600 and $3,350, respectively. The company reported credit sales of $980,500 during the year, and wrote off $2,800 of uncollectible accounts. Chancellor Company prepared the following aging schedule on December 31, 2013:  Required:
a) Prepare general journal entries to record the 2013 credit sales, collection of accounts receivable, write-off of uncollectible accounts, and estimate of uncollectible accounts.
b) What is Chancellor Company's net realizable value of receivables after all of the above entries have been made?

Chancellor Company Began 2013 with Balances in Accounts Receivable and Allowance