Extracted text: of credit sales. At the end of the year, the company ages its accounts receivable and adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During July to December of 20X7, Texas Gulf Carts completed the following transactions: August 9 Made a compound entry to write off uncollectible accounts: J. Aguilar, $200; Scaton Co., $100; and T. Taylor, $700. Sept. 30 Recorded uncollectible account expense equal to 1%% of credit sales of $140,000 Oct. 18 Wrote off accounts receivable as uncollectible the $500 account receivable from Lantz Co. and the $400 ac unt receivable from Navisor Corp. Dec. 31 Recorded uncollectible-account expense based on the aging of reccivables, which follows: Age of Accounts 1-30 31 - 60 61 – 90 Over 90 Total Days Days Days Days $163,000 $100,000 $40,000 $14,000 9,000 Estimated percent uncollectible 0.1% 0.5% 5% 30% Required: a. Record the transactions in the journal. b. Open the Allowance for Uncollectible Account and post entries affecting that account. Keep a running balance. c. Show how Texas Gulf Carts should report accounts receivable on its balance sheet at December 31, 20X7. Question 4 The June 30, 20X 9, balance sheet of Ram Technologies reports the following: Accounts Receivable... Allowance for Uncollectible Accounts (Cr)..... $265,000 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales.
Extracted text: Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: Over 90 Total Balance Customer 1-30 Days 31-60 Days 61-90 Days Days Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12,000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 2% 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: 1. How much will the Uncollectible account expense for the year be? 2. What will the final balance in the Allowance account be, after adjusting for uncollectible account expense?