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Goole Party Planners had a $40,000 balance in AccountsReceivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During October, Google made credit sales of $100,000. October collections on account were $94,000, and write-offs of uncollectible receivables totaled $1,700. Uncollectible-account expense is estimated as 2% of revenue.
1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during October. Explanations are not required.
2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at October31. How much does Google expect to collect?
3. Show how Google will report Accounts Receivable on its October 31 balance sheet.
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