Media Comparative Balance Sheet (partial) December 31, 2017 and 2016 2017 2016 L
ID: 2601600 • Letter: M
Question
Media Comparative Balance Sheet (partial) December 31, 2017 and 2016 2017 2016 Less (18) (19) 1: More Info Nov 30 Wrote off as uncollectible the $1,300 account receivable from Cheap Carpets and the $200 account receivable from Show-N-Tell Antiques Dec 31 Adjusted the Allowance for Doubtful Accounts and recorded doubful-account expense at year-end based on the aging of receivables 2: More Info Age of Accounts Accounts Receivable 1-30 Days 31-60Days 61-90 Days Over 90Days 49.000 35% 130.000 $38,000 13.000$ 02% 2% 15% 3: Requirements 1. Record the transactions for the last quarter of 2017 in the journal. Explanations are not required 2. Prepare a T-account for Allowance for Doubtul Accounts with the appropriate beginning balances. Post the entries from requirement 1 to that account. 3. Show how Media Communications will report its accounts receivable in a comparative balance sheet for 2016 and 2017. Use the three-line reporting format. At December 31, 2016, the company's Acoounts Receivable balance was $213.000, and the Allowance for Doubtful Accounts stood at $4.800 0 Accounts Receivable-Cheap Carpets O Accounts 0 Allowance for Doubtful Accounts O Cash O Doubtful-Account Expense O Sales Revenue N-Tell Antiques (2) O Cash 0 Accounts Receivable-Cheap Carpets O Accounts O Allowance for Doubtful Accounts Doubful-Account Expense Sales Revenue N-Tell Antiques (3) O Cash O Accounts Receivable-Cheap Carpets O Accounts Receivable-Show-N-Tell Antiques Sales Revenue 0 Allowance for Doubtful Accounts Doubtful-Account ExpenseExplanation / Answer
Journal:
Balance sheet:
Account Debit Credit Account Debit Credit Allowance for doubtful accounts 1,300 Accounts receivable cheap carpets 1,300 [Account written off] Allowance for doubtful accounts 200 Accounts receivable show n tell 200 [Account written off] Doubtful account expense 16,820 Allowance for doubtful accounts 16,820 [ bad debt expense]