Reference no: EM132781306

Problem 1. Prepared all required journal entries and post them to M&T Plumbing's ledger.

a. Complete also transactions for July 31.

Problem 2. Reconcile the Accounts receivable control account to the Accounts receivable subsidiary ledger.

Here are the balances of the accounts at June 30, 2013. Take into consideration as beginning balances of July.

Cash - Debit balance of $73,791

Accounts Receivable - Debit balance of $2,000

Inventory - Debit balance of $2,541

Consider the following July transactions for M&T Plumbing Company, whose owner is Michael Thums,

July 1: Performed plumbing services for Pasthas' for $8,000 on terms 3/10, n/20.

3: M&T Plumbing decides to adopt the allowance method. Uncollectible account expense is estimated at 2% of credit sales.

10: Borrowed money from Bank of America, $10,000, 7% for 180 days.

12: After discussions with Charles's Wig Stand, Michael Thums has determined that $225 of the receivable owed to M&T Plumbing will not be collected. Write off this portion of the receivable.

15: Sold goods to WaterCounty for $4,000 on terms 4/10, n/30. Cost of goods sold was $600.

15: Recorded uncollectible account expense estimated at 2% for WaterCounty sale.

28: Sold goods to PlumbPlus, for cash of $1,200 (cost $280).

28: Collected from Charles's Wig Stand $225 of receivable previously written off. Reinstated the remaining balance of Charles's receivable.

29: Paid cash for utilities of $350.

31: Created an aging schedule for M&T Plumbing for accounts receivable. M&T determined that accounts 1-20 days old were 2% uncollectible and accounts over 20 days old were 15% uncollectible. Prepared an aging schedule and adjusted the Allowance for uncollectible.

Charles's Wig Stand - Balance at June 30, 2013 was 1,775.

31: M&T Plumbing prepared all other adjusting entries necessary for July.