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During June 2019, Andy Company had the following transactions: 1. Sales of $185,000 ($142,000 on account, $43,000 for cash) 2

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Answer #1

a)

Date Events Particulars Debit Credit
30-Jun 1) Accounts Receivable $ 142,000.00
Cash $   43,000.00
To Sales $ 185,000.00
30-Jun 2) Cash $ 128,000.00
To Accounts Receivable $ 128,000.00
30-Jun 3) Allowance for uncollectibles $     1,900.00
To Accounts Receivable $     1,900.00
30-Jun 4) Accounts Receivable $        600.00
To Allowance for uncollectibles $        600.00
30-Jun Cash $        600.00
To Accounts Receivable $        600.00

b)

30-Jun Bad Debts $           1,670
To Allowance for uncollectibles $           1,670
($ 37100 x 4.5%)

c)

Net Realizable value of Accounts Receivable ($ 37100 - $ 1670) $ 35,430.00

Workings:

Accounts Receivable Allowance for uncollectibles
Beg. Bal. $   25,000.00 2) $ 128,000.00 3) $   1,900.00 Beg. Bal. $ 1,125.00
1) $ 142,000.00 3) $     1,900.00 4) $    600.00
4) $        600.00 5) $        600.00
End. Bal $   37,100.00
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