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The September 30 20X4 records of Synetics Computers include these accounts Accounts Receivable $109,000 Allowance for Doubtful Accounts 4100 At year end Synetics ages its receivables and

The September 30, 20X4, records of Synetics Computers include these accounts:

Accounts Receivable

$109,000

Allowance for Doubtful Accounts

(4,100)

At year end, Synetics ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 20X4, Synetics completed the following selected transactions:

20X4

 

Oct. 31

Wrote off the following accounts receivable as uncollectible: Cisco Foods $300; Tindall Storage, $400; and Tiffany Energy, $1,100.

Dec. 31

Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year end, based on the aging of receivables, which follows.

 

 

Age of Accounts

     

Total Balance

1–30 Days

31–60 Days

61–90 days

Over 90 Days

$114,000

$80,000

$20,000

$4,000

$10,000

Estimated uncollectible

0.5%

1.0%

5.0%

40.0%

Required

1. Record the transactions in the journal. Explanations are not required.

2. Prepare a T-account for Allowance for Doubtful Accounts and post to that account.

3. Show how Synetics Computers will report its accounts receivable in a comparative balance sheet for 20X4 and 20X3. Use the reporting format on page 272. At December 31, 20X3, the company’s Accounts Receivable balance was $111,000 and the Allowance for Doubtful Accounts stood at $3,700.

Jun 18 2020 View more View Less

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