1) On June 30, Paisley Party Planners had a $35,000 balance in Accounts Receivable and...

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1) On June 30, Paisley Party Planners had a $35,000 balance in Accounts Receivable and a $3,252 credit balance in Allowance for Uncollectible Accounts. During July, Paisley made credit sales of $198,000. July collections on account were $169,000, and write-offs of uncollectible receivables totaled $2,890. Uncollectible-accounts expense is estimated as 4% of credit sales. No sales returns are expected. Required Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during July. Explanations are not required. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at July 31. How much does Paisley expect to collect? Show how Paisley Party Planners will report accounts receivable and net sales on its July 31 balance sheet and income statement for the month ended July 31. IV. 1. 11. If Paisley had used the Direct Write-Off method, what would be the amount of Bad Debt Expense or Uncolllectible Account Expense for the period

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To tackle the problem step by step well break it down into the required journal entries calculate the ending balances and prepare the balance sheet and income statement sections I Journal Entries 1 Credit Sales Date July XX Debit Accounts Receivable 198000 Credit Sales Revenue 198000 2 Collections on Accounts Date July XX Debit Cash 169000 Credit Accounts Receivable 169000 3 Writeoffs of See Answer

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