(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method (percenta...

(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method (percentage of sales), and reporting receivables on the balance sheet [20-30 min]

Beta Watches completed the following selected transactions during 2010 and 2011:

Requirements

1. Open T-accounts for Allowance for uncollectible accounts and Uncollectible-account expense. Keep running balances, assuming all accounts begin with a zero balance.

2. Record the transactions in the general journal, and post to the two T-accounts.

3. The December 31, 2011, balance of Accounts receivable is $133,000. Show how Accounts receivable would be reported on the balance sheet at that date. Use the three line format of reporting the net accounts receivable.