During June 2019,Andy Company Had the Following Transactions

question 98

Essay

During June 2019,Andy Company had the following transactions:
1.Sales of $185,000 ($142,000 on account,$43,000 for cash).
2.Collections on account,$128,000
3.Write-offs of uncollectible receivables,$1,900
4.Recovery of receivable previously written off,$600.
Additional information:
Ignore Cost of Goods Sold
Andy uses the allowance method for uncollectibles.
Andy estimates that 4.50% of its accounts receivable will be uncollectible.
On June 1,2019,the Accounts Receivable balance was $25,000 and the Allowance for
Bad Debts had a normal account balance of $1,125.
Requirements:
a.Prepare the journal entries for the June 2019 transactions.Because the transactions represent a summary of events,use June 30 for all dates.Omit explanations.
b.Prepare the June 30,2019 adjusting journal entry.Omit explanation.
c.What is the net realizable value of Accounts Receivable on June 30,2019 (after the adjusting journal entry has been posted)? Show computations and label your work.

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Definitions:

Recall

The act of retrieving information or memories from the past, without having the items present for recognition.

Amygdala

A part of the brain's limbic system involved in emotion regulation, memory processing, and decision-making, particularly with emotional reactions.

Temporal Lobes

Regions of the brain located on either side of the head above the ears, involved in processing auditory information, memory, and integrating sensory input.

Implicit Memory

A form of memory where past experiences assist in accomplishing a task without the individual being consciously aware of these past experiences.