Question

Perform the following accounting for the receivables of Harper and Murphy​, an accounting​ firm, at December​ 31, 2017.

Perform the following accounting for the receivables of Bronson and Moore, an accounting firm, at December 31, 2017 Requirements Requirements 1 and 2. Let's prepare the T-accounts for accounts receivable and allowance for uncollectible accounts. (Leave any unused cells blank.) Accounts Receiva Allowance for Uncollectible Accounts Beg bal Beg bal End bal Endal Requirement 3. Show two ways Bronson and Moore could report accounts receivation is balance sheet December 31, 2017. Use parentheses or a minus sign to indicate numbers to be subtracted Now, let's show an allemate method of reporting accounts receivable on the balance sheet at December 31, 2017

Answer 1

1.

Accounts Receivables

Beg Bal.	81000	Collections	796000
Service Revenue	859000	Allowance for Uncollectible accounts (or write offs)	5000
		Ending Bal.	139000
	940000		940000

Allowance for Uncollectible Accounts

Accounts Receivables (or Write offs)	5000	Beg Bal.	9000
Ending Bal.	14000	Bad debts expense	10000
	19000		19000

3.

There are two ways of presenting the Accounts Receivable. They are:

1. Allowance Method (as done above):

Accounts receivable	139000	ie. Bal fig in Question 1
Less: Allowance for Uncollectible Accounts	14000	ie. Bal fig in Question 2
Net Balance of Receivables	125000	ie difference

2. Direct write off Method:

Accounts receivable	144000	ie 81000+859000-796000
Less: Bad debt expense	5000	ie actual write offs
Net Balance of Receivables	139000	ie difference

Please comment in case of any query regarding the solution.