Pence Company Began 2013 with a Balance of $74,000 in Accounts

question 10

Essay

Pence Company began 2013 with a balance of $74,000 in accounts receivable and $4,300 in allowance for doubtful accounts. During the year, it provided $328,000 in services to customers on account and collected $290,000 in cash from its accounts receivable. Pence wrote off $3,250 of uncollectible accounts during 2013. At the end of the year, the company prepared an aging schedule and adjusted its accounts based on the estimate that $6,300 of receivables would not be collected.
Required:
a) Prepare the journal entries to record all the transactions related to accounts receivable, including the estimate of uncollectible accounts expense.
b) What was the net realizable value of Pence's accounts receivable at the end of 2013?

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Definitions:

Roger Taney

An American jurist who served as the fifth Chief Justice of the United States, known for delivering the majority opinion in the Dred Scott v. Sandford case, which ruled that African Americans could not be American citizens.

Bank of the United States

Proposed by the first secretary of the treasury, Alexander Hamilton, the bank that opened in 1791 and operated until 1811 to issue a uniform currency, make business loans, and collect tax monies. The Second Bank of the United States was chartered in 1816 but President Andrew Jackson vetoed the recharter bill in 1832.

Economic Privilege

The advantages or opportunities afforded to individuals or groups resulting from their economic status or wealth.