Reference no: EM132917445
In January 2021, the refrigeration equipment maintenance services company, Cooling Chécheres S.A .., provided services for a total price of $ 634,000 and gave its customers a discount of $ 62,100.
All payment for services is made on credit and the amount will be paid in full in the month of March. The total cost of providing the services (labor, transportation, tools, etc.) was $ 223,800. The company estimates that 4% of its accounts receivable will be the provision for doubtful accounts.
On February 1, one of the clients who owed $ 4,760 to the company informed the company that it will be impossible to pay this debt and that they must wait for the judicial resolution on their bankruptcy declaration to come out before making a collection claim.
Required:
Problem 1. Record the Accounts Receivable as of January 31, 2021 (which includes the calculation of the Net Accounts Receivable)
Problem 2. Register accounts receivable as of February 28, 2021
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