How will the accounts receivable and allowance appear on dec

Reference no: EM132705369

JackJoe, Inc. sells toy mice to upscale pet stores. The company has a broad customer base, and routinely sells on credit. Annually, the company reviews and updates its allowance for uncollectible accounts. The company's accounting assumption is that XX.X% (select a collectible % from between 92% and 99%)of the end of year Accounts receivable balance will be collectible. Write-offs against the allowance account are made throughout the year when individual accounts are deemed to be uncollectible. Following are relevant facts for the current year:January 1, x1 balance in accounts receivable is $2,000,000 and Allowance for doubtful accounts is $100,000. JackJoe sold $10,000,000 of toy mice during the year on credit and collected $9,900,000 of cash. During X1, $100,000 of uncollectible accounts were written off against the allowance.

Question (a) Create an account analysis for both Accounts receivable and Allowance for doubtful accounts.

Question (b) Prepare the year end adjusting journal entry.

Question (c) How will the accounts receivable and allowance appear on the Dec 31, X1 Balance sheet?

Reference no: EM132705369

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