Hess Computer Store Has Credit Sales of $450,000 in 2013

question 17

Essay

Hess Computer Store has credit sales of $450,000 in 2013 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2013, $130,000 of accounts receivable remain uncollected. The credit manager of Hess prepared an aging schedule of accounts receivable and estimates that $7,800 will prove to be uncollectible.
On March 4, 2014 the credit manager authorizes a write-off of the $1,000 balance owed by A. Myers.
Instructions
(a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2013.
(b) Show the balance sheet presentation of accounts receivable on December 31, 2013.
(c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $145,000 and the balance of Allowance for Doubtful Accounts is a credit of $5,000. Make the appropriate entry to record the write off of the Myers account. Also show the balance sheet presentation of accounts receivable before and after the write-off.

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Definitions:

Aerial Distribution

The spatial spread or dispersion of a substance, organism, or feature through the atmosphere.

Unconformity

A discontinuity in sedimentary rock sequences indicating a period of erosion or non-deposition.

Numeric Ages

Ages or dates assigned to geologic events or materials in years, often determined through radiometric dating.

Volcanic Features

Volcanic features refer to the various physical formations created by the process of volcanism, including craters, calderas, lava flows, volcanic ash deposits, and more.