Peter Corporation Reported the Following Account Balances for 2018 Peter Corporation Estimates That 2% of Credit Sales Should Be

question 92

Essay

Peter Corporation reported the following account balances for 2018. Peter has a January to December fiscal year:
$$\begin{array} { | l | r | } \hline \text { Accounts Receivable at Jan 1, 2018 (debit) } & \$ 40,000 \\\hline \text { Allowance for Doubtful Accounts at Jarn } 1,2018 \text { (credit) } & \$ 6,000 \\\hline \text { Total credit sales during } 2018 & \$ 200,000 \\\hline \text { Total collections on accourts receivable during } 2018 & \$ 180,000 \\\hline \text { Uncollectible accounts writter off durirg } 2018 & \$ 10,000 \\\hline\end{array}$$ Peter Corporation estimates that 2% of credit sales should be used to allow for bad debts.
-Prepare a partial balance sheet at December 31, 2021 for the accounts receivable section only, showing the accounts receivable at gross, the allowance for doubtful accounts and accounts receivable at net.
Peter Corporation
Balance Sheet (Partial) At Dec 31, 2021

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