2. Marvin’s Magic Shop begins 2014 with Accounts Receivable Balance of $80,000.00 and Allowance for Uncollectible Accounts $4,000.00. During the year Sales were $500,000.00, with 75% on account. Cash Collections totaled $220,000.00. Two customers’ accounts totaling $5,000 was written off during the year. But one of the customers actually paid the amount written off of $2,000.00 prior to 12/31/14. At 12/31/2014, Marvin determines that 8% of ending Accounts Receivable will not be paid due to the bad economy. Answer the following questions:
a. Record the all Journal Entries for the year for:
i. Sales Transactions
ii. Collections of Customer Accounts
iii. Write-off Transactions
b. What is the Journal Entry to record Estimated Bad Debt Expense at Dec 31, 2014?
c. What is the ending balance in the Allowance for Uncollectible Accounts at Dec 31, 2014?
d. What is the Realizable value of Accounts Receivable at 12/31/14?
e. Assume the Beginning Balance in Allowance for Doubtful Accounts is a $500 Debit Balance, what would be the 12/31/2014 Year End Entry for Bad Debts?
a. Record the all Journal Entries for the year for:
i. Sales Transactions
ii. Collections of Customer Accounts
iii. Write-off Transactions
b. What is the Journal Entry to record Estimated Bad Debt Expense at Dec 31, 2014?
c. What is the ending balance in the Allowance for Uncollectible Accounts at Dec 31, 2014?
d. What is the Realizable value of Accounts Receivable at 12/31/14?
e. Assume the Beginning Balance in Allowance for Doubtful Accounts is a $500 Debit Balance, what would be the 12/31/2014 Year End Entry for Bad Debts?
