Airdrie Services Inc. started business on March 1, 2017. The company produces monthly financial statements and had total sales of $600,000 (of which $570,000 were on account) during the first four months. On June 30, the Accounts Receivable account had a balance of $210,000 (no accounts have been written off to date), which was made up of the following accounts aged according to the date the services were provided: The following accounts receivable transactions took place in July 2017: Jul. 12 Determined the account of Vesuvus Ltd. was uncollectible and wrote it off. 15 Collected $4,200 from Torrance Trucks for services in the first three months. 21 Decided the account of Lou Del Rio was uncollectible and wrote it off. 24 Collected $6,408 from Mort Black for services in the month of March. 26 Received a cheque from Lou Del Rio for $9,600 plus two cheques, of $9,408 each, postdated to September 10 and November 10. 31 Total sales of service in the month were $162,000; 90 percent of these were on on account and 60 percent of the sales on account were collected in the month. Required 1. Airdrie Services Inc. has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on June 30 (for the months of March through June), assuming the following estimates of uncollectibles:
Why choose us
Your assignments are important as they contribute to your overall grade. This gives you all the more reason to take your assignments seriously even if it means seeking help from people who have been in your shoes before and excelled.
+1(838) 444 4907