Chapter 5 Problems

ACC 201

5-24 determining account balances: percent of revenue allowance method of accounting for uncollectible accounts.

1. 925,000 x .5% 4,625

Accounts Receivable

Allowance for Doubtful Accounts

Beginning Balance52,500

Beginning Balance 4,725

Sales on account.925,000

Uncoll. Acct. expense4,625

Collections on account(835,000)

Write off of bad accts (3,100)

Write off of bad accts(3,100)

Balance6,250

Balance139,400

Accounts Receivable Balance, 12/31/12

139,400

Less: Allowance for Doubtful Accounts, 12/31/12

*6,250*

Net Realizable Value

133,150

5-26 determining of account balances - percent of receivables allowance method of accounting for uncollectible accounts.

1. Service revenue 292,000 ? 57,400 receivable balance 234,600

2....