90.2K

Verified Solution

Link Copied!

Financial Accounting (129 Supex (Receivables) wip.docx Instructor-Turek Use your own paper Start each problem on a new sheet of paper C. Harris Digital Co, reported the following information on its balance sheet as of December 31, 2020. Accounts Receivable, gross $960,000 Less: Allowance for Doubtful Accounts 70,000 Accounts Receivable, net $890,000 Instructions: 1. For 2021, prepare the journal entries to record the following five transactions related to receivables. Assume that Harris Digital offers no cash discounts for early payments. Sales to customers on Account $3,200,000 b. Accepted returns and allowances from customers 50.000 Collections from customers on accounts receivable 2,800,000 d. Write-offs of accounts receivable deemed uncollectible 90,000 Recovery of bad debts previously written off (not included in c. above) 25,000 2. Set up T-accounts for A/R-Gross and AFDA, then insert the their January 1, 2021 balances, then post the entries to these two accounts, then determine year-end balance for A/R-Gross and the unadjusted balance in AFDA. 3. Prepare the journal entry to record bad debts expense for 2021, assuming that an aging of A/R indicates that uncollectible accounts are estimated to be $100,000(i.e., calculated amount) e

Answer & Explanation Solved by verified expert

See Answer