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Reconstructing transactions affecting accounts receivable and uncollectible accounts The sales all on account of Pins Company in 2008 its first year of operations

Reconstructing transactions affecting accounts receivable and uncollectible accounts. The sales, all on account, of Pins Company in 2008, its first year of operations, were $700,000. Collections totaled $500,000. On December 31, 2008, Pins Company estimated that 2% of all sales would probably be uncollectible. On that date, Pins Company wrote off specific accounts in the amount of $8,000. The balances in selected accounts on December 31, 2009, are as follows:  On December 31, 2009, Pins Company carried out an aging of its accounts receivable balances and estimated that the 2009 ending balance of accounts receivable contained $11,000 of probable uncollectible. That is, the allowance account should have an $11,000 ending credit balance. It made adjusting entries appropriate for this estimate. Some of the $800,000 sales during 2009 were for cash and some were on account; the problem purposefully does not give the amounts. a. What was the balance in the Accounts Receivable, Gross, at the end of 2008? Give the amount and whether it was a debit or a credit. b. What was the balance in the Allowance for Receivable Accounts account at the end of 2009? Give the amount and whether it was a debit or a credit. c. What was bad debt expense for 2009? d. What was the amount of specific accounts receivable written off as being uncollectible during 2009? e. What were total cash collections in 2009 from customers (for cash sales and collections from customers who had purchased on acc

Apr 17 2020 View more View Less

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