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kirill [66]
3 years ago
15

Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2

021, Chez Fred's credit sales and collections were $118,000 and $148,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $120 in accounts receivable were written off during 2021 and if the allowance account had a balance of $600 on December 31, 2021
Business
1 answer:
yan [13]3 years ago
5 0

Answer:

$50,120

Explanation:

Account receivable on December 31, 2021 × 3% = 600

Account receivable on December 31, 2021 = $600 ÷ 3% = $20,000

Accounts receivable on January 1, 2021 = $20,000 - $118,000 + $148,000 + $120 = $50,120

Therefore, the balance of accounts receivable on January 1, 2021 is $50,120.

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2 years ago
At the beginning of the​ month, supplies were $ 6 comma 000. During the​ month, $ 7 comma 000 of supplies were purchased. At​ mo
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Answer:

Adjusting Entry

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The adjusting entry is made by debiting cost of goods sold account which reflects the amount of inventory sold during the month and the entry is credited by beginning inventory of $6,000 and the remaining amount which is $5,000 is credited in purchases account.

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