Reference no: EM132468182

Problem - Hilly Mountain Party Planners had a $35,000 balance in Accounts Receivable and a $2,300 credit balance in Allowance for Uncollectible Accounts. During October, the store made credit sales of $163,000. October collections on account were $142,000, and write-offs of uncollectible receivables totaled $3,200. The required allowance at year-end is calculated to be $4,500.

Requirements -

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 October 31. How much does the store expect to collect?

3. Show how the store will report Accounts Receivable on its October 31 Balance Sheet.