Question

The Accounts Receivable balance and Allowance for Bad Debts for Precious Gems Collection at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Precious Gems Collection completed the following transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Precious Gems Collection's transactions for 2018 assuming Precious Gems Collection uses the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal ante table a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold). i Requirements i More Info Accounts and Explanation Debit Credit 1. Journalize Precious Gems Collection's transactions for 2018 assuming Precious Gems Collection uses the allowance method. 2. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. 3. Show how accounts receivable would be reported on the balance sheet at December 31, 2018. a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold). b. Collections on account, $216,000. c. Write-offs of uncollectibles, $6,300. d. Bad debts expense of $6,000 was recorded. Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 7 parts remaining Clear All Check Answer

Answer 1

The Acco unt Recaiv able bol. amol Allowon for Bad Dests rO Paecious Grems coflection Req: ournal ent Date Account Nome Pebit Caedit ACCOUNT Recaivabl 284300 TO soles Revenue 287 30O CIO 2ec03d sales aevenue) ь. cash 2 16000 TO ACCOUnt Recaivoble 2 16000 C TO ae coa a the Poyment) AlOWance for Bad Debts 6300 TO ACCOUnts Recaiva6le 6300 CTO wnte Off uncolleCti61 e) Bad peb EXPense 6000 TO AllOwan Ce for Bod Debts 6000 CTO ae core bad debt EXP) Reg 2 Post Tccounts Account Recaiva ble 216000 collection $ 10800 Be9 Bal 28 7300 63 O0 cente off Revenue 75800 Fndi Ba

Debts foaBad Allowance Beg. Bolan ce 2 000 6000 wnte off Bad pebt EXP 6300 700 Enaiy Bal Baa Debt EXPense Beg Bal EXPense 6000 Ending Bal 6000 Rea 3 Balance-sheat (paial) ASsets cuc ASsets: ACCOunt Recaivable S 75800 (a00) Less: Allowan Ce Foa Bad pebt F4100 Net account Recaivable