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Was given 1 hr of instruction, then handed this for homework. Not looking for answers, just examples of what this instructor wants. I have a vague idea of what he wants, any help is appreciated.
Use the transactions below to prepare an aging of accounts receivable as of December 31, 2014 and calculate sales for the period. Also, use this information to calculate Allowance for Bad Debts and Bad Debts expense for all 3 methods. In addition, calculate AR Turnover and Days in AR. Opening AR was $10,000. The beginning balance of the Allowance account was $100. Use 2% of Sales and AR for the Sales and AR methods. Use 50% of 120+, 30% of 91-120 days, 20% of 61-90 days, 10% of 31-60 days and 5% of current as uncollectable amounts for the Aging method.
ABC Company
Sale of $3,000 on August 12, 2014
XYZ Company
Sale of $2,500 on November 19, 2014
123 Company
Sale of $1,000 on December 2, 2014
321 Company
Sale of $1,500 on November 11, 2014
Alpha Company
Sale of $2,000 on September 9, 2014
Omega Company
Sale of $2,200 on December 15, 2014
ABC Company
Receipt of $500 on December 30, 2014
Alpha Company
Receipt of $100 on December 31, 2014
Use the transactions below to prepare an aging of accounts receivable as of December 31, 2014 and calculate sales for the period. Also, use this information to calculate Allowance for Bad Debts and Bad Debts expense for all 3 methods. In addition, calculate AR Turnover and Days in AR. Opening AR was $10,000. The beginning balance of the Allowance account was $100. Use 2% of Sales and AR for the Sales and AR methods. Use 50% of 120+, 30% of 91-120 days, 20% of 61-90 days, 10% of 31-60 days and 5% of current as uncollectable amounts for the Aging method.
ABC Company
Sale of $3,000 on August 12, 2014
XYZ Company
Sale of $2,500 on November 19, 2014
123 Company
Sale of $1,000 on December 2, 2014
321 Company
Sale of $1,500 on November 11, 2014
Alpha Company
Sale of $2,000 on September 9, 2014
Omega Company
Sale of $2,200 on December 15, 2014
ABC Company
Receipt of $500 on December 30, 2014
Alpha Company
Receipt of $100 on December 31, 2014