Reference no: EM132802117
Problem - Below are the sub-ledger accounts receivable for Emilio Company:
Anthony $7,200
Malaya 9,700
Mekhi 18,200
Omari 37,000
Kaytana 900
Total $73,000
There is no balance in the Allowance for Doubtful accounts.
Required -
a. Prepare the appropriate journal entries given the following transactions:
i. the controller would like you the write off the following accounts as uncollectible:
Anthony 7,200
Mekhi 18,200
Kaytana 900
ii. Received payment from Malaya for $2,600.
iii. Collected $7,200 from the Anthony account.
iv. Write off the balance in the Malaya account.
v. Collected $18,000 from Mekhi, the remainder will not be collectible.
vi. The controller estimates that 2% of the total accounts receivable balance will be uncollectible.
b. What is the net realizable value of the accounts receivable after all adjustments?