Bering Computers Has Credit Sales of $600,000 in 2020 and a Debit

question 17

Essay

Bering Computers has credit sales of $600,000 in 2020 and a debit balance of $1,600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2020, $105,000 of accounts receivable remain uncollected. The credit manager of Bering prepared an aging schedule of accounts receivable and estimates that $5,600 will prove to be uncollectible.
On April 15, 2021 Bering Computers writes off the $1,500 balance owed by A. Justice.
Instructions
a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2020.
b) Show the statement of financial position presentation of accounts receivable on December 31, 2020.
c) On April 15, before the writeoff, assume the balance of Accounts Receivable account is $123,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the writeoff of the Justice account. What it is the net realizable value of the accounts receivable before and after the writeoff?

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Definitions:

Whole Thought

A complete or comprehensive thought that encapsulates a fully formed idea or concept.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Habituation

The decrease in response to a stimulus after repeated presentations.

Rhythm

The patterned, recurring sequence of events, sounds, or activities, often associated with music, dance, or the natural occurrences in life.