Chancellor Company Began 2013 with Balances in Accounts Receivable and Allowance

question 105

Essay

Chancellor Company began 2013 with balances in accounts receivable and allowance for doubtful accounts of $88,600 and $3,350, respectively. The company reported credit sales of $980,500 during the year, and wrote off $2,800 of uncollectible accounts. Chancellor Company prepared the following aging schedule on December 31, 2013: Required:
a) Prepare general journal entries to record the 2013 credit sales, collection of accounts receivable, write-off of uncollectible accounts, and estimate of uncollectible accounts.
b) What is Chancellor Company's net realizable value of receivables after all of the above entries have been made?

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Definitions:

Electrophoresis

A laboratory technique used to separate charged molecules, such as DNA, RNA, or proteins, based on their size and charge by applying an electric field.

Ninhydrin Test

A chemical test used for detecting the presence of amino acids, where a color change indicates a positive result.

Major Ionization State

The predominant form of a molecule at a given pH level, determined by the molecule's dissociation into ions in solution.

Histidine

An essential amino acid important in the growth and repair of tissues, often mentioned in the context of protein synthesis.