Question : 55) Journalize the following transactions for The Computer Store. The : 1230162

55) Journalize the following transactions for The Computer Store. The Computer Store uses the allowance method of accounting for uncollectible receivables.

April 5The Computer Store sells $3,200 of computer equipment on account to Jane Doe.

June 5Jane Doe pays The Computer Store $2,000 of the amount she owes.

July 7After repeated attempts to collect the balance due from Jane Doe fail, The Computer Store writes-off the remainder of the amount she owes.

56) At the end of the current year, Accounts Receivable has a balance of $700,000, the Allowance for Uncollectible Accounts has a credit balance of $10,000 and net sales for the year are $2,000,000. Using the aging method, the balance of Allowance for Uncollectible Accounts is estimated at $30,000.

Required:

1.Prepare the adjusting journal entry at the end of the year

2.Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts.

3.Determine the net realizable value of accounts receivable at the end of the year.

57) At the end of the current year, Accounts Receivable has a balance of $1,910,000, the Allowance for Uncollectible Accounts has a credit balance of $46,104 and net credit sales for the year are $2,535,000. Using the percent-of -sales method, the company determines that uncollectibles will amount to 3% of net credit sales.

Required:

1.Prepare the adjusting journal entry at the end of the year

2.Determine the adjusted balances for Accounts Receivable and the Allowance for Uncollectible Accounts.

3.Determine the net realizable value of accounts receivable at the end of the year.

58) Info Times Inc. had service revenue on account for the year of $300,000 and cash collections of $130,000. During the year, uncollectible accounts receivable of $700 were written off. At December 31, an aging of accounts receivable indicated that Info Times Inc. will not collect $4,500 of its accounts receivable. Info Times Inc. had a $2,100 credit balance in the Allowance for Uncollectible Accounts at the beginning of the year.

1.Journalize the entries to record (1) the service revenue, (2) the cash collections, (3) the write-off of the uncollectible receivable and (4) the year end entry to record uncollectible account expense.

59) During its first year of operations, Credit Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts.

Credit sales$500,000

Collections on account$380,000

Write-offs of uncollectible accounts$7,500

Uncollectible-account expense2.5% of credit sales

Journalize the above transactions (explanations are not required.)

60) During its first year of operations, Credit Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts.

Credit sales$500,000

Collections on account$380,000

Write-offs of uncollectible accounts$7,500

Uncollectible-account expense2.5% of credit sales

Create T accounts for accounts receivable, allowance for uncollectible accounts, and uncollectible accounts expense. Post the journal entries, calculate ending account balances, and answer the following questions.

1.How much do customers owe the company?

2.What is the net realizable value of the company’s accounts receivable?

3.What is the amount of expense reported on the income statement related to uncollectible accounts?