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 transact (Click the icon to view the transactions.) Read the requirements. Requirement 1. Joumalize 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 entry table.) a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold). 0 More Info Accounts and Explanation Debit Credit a. Sales revenue on account, $287,300 (ignore Cost of Goods Sold). b. Collections on account, $216,000. c. Write-offs of uncollectibles, S6,300. d. Bad debts expense of $6,000 was recorded. * Requirements Print Done 1. Journalize Precious Gems Collection's transactions for 2018 assuming Precious Gems Collection usos the allowance method. 2. Post the transactions to the Accounts Receivable, Allowance for Bad Debls, and Bad Debis 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 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

Page No ① Debit Credit $287,300 L $216000 - Answer 0 Jawinal entories using allowance method To Account bible . @ Accounts Oreceivables ale $287,300 To sales ale c To record goods sold) 10 cash $ 216000 To Accounts receivable To record cash collected) © Allowance for bad debt $6300 Accounts receivable (To record bed debts coritten off) Bad debt ole $ 6000 -Allowance for bad debts alc 67o record bad debts) I accontenta Decore conceivable Account Ending balance = 287300 + 10800 $298100 $6300 $6000

Page No @ Accounts Peceivable account to Beginning balance $10800 By Cash ale $ 216000 to Sales alt $ 287300 By Alionace for bad debt $ 6300 By Ending balance * 75800 $ 298100 $ 298100 WANAN Allowance for bad debts account -Allowance for bad deblo account To Account receivabdes B 6300 By Beginning balance Bad debt alc To Ending balance 1400 $ 8000 $ 2000 1 & 6000 $ 8000 Wu Wu W → Ending balance E 6000 + 2000 - 6300 =$1700 Bad debt ezpense account Bad debt expenses account Allowance for bad deblo $6000 By Rokit & Coms ale $6000 $ 6000 $6000

hef Page.no @ © Amount Accounting receivable account and balance sheet. Particulari Amount Assets Cwurent assets Accounts receivable $ 95800 Allowance for bad debts (1700) $ 74100