Analyze the effects of accounts receivable transactions using the percentage of sales method

p4-49a.xls

Sheet1

Problem 4-49A					Name
					Section
A	B	C	D	E	F	G	H
5	Situation a.	Bonnie Company
6	Balances at year end:
7	Accounts receivable						$ 112,000
8	Allowance for uncollectible accounts (credit balance)						400
9	Net credit sales						$ 315,000
10	Percentage estimated to be uncollectible						3%
11	Beginning accounts receivable balance for part 4						$ 105,000
12	Bad debt expense for the year						Formula 1
13	Allowance for uncollectible accounts balance						Formula 2
14	Net realizable value of accounts receivable						Formula 3
15	Average net accounts receivables						Formula 4
16	Accounts receivable turnover ratio						Formula 5
17
18	Situation b.	Clyde Company
19	Balances at year end:
20	Accounts receivable						$ 220,000
21	Allowance for uncollectible accounts (debit balance)						200
22	Net credit sales						$ 1,525,000
23	Percentage estimated to be uncollectible						1%
24	Beginning accounts receivable balance for part 5						$ 226,000
25	Bad debt expense for the year						Formula 6
26	Allowance for uncollectible accounts balance						Formula 7
27	Net realizable value of accounts receivable						Formula 8
28	Average net accounts receivables						Formula 9
29	Accounts receivable turnover ratio						Formula 10
30
	End of Problem

&LReimers, Financial Accounting 3e