accounting question 3

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

i am stuck on this problem. here is a pic of the problem

http://imgur.com/uM9j8DU

any help would be appreciated

Oct 20th, 2017

                                        Jersey Company

Beginning balance of Accounts receivable                                     $30,000

Add : Sale on account during the year                                           170,000

Total                                                                                               $200,000

Less: Write-off accounts receivable                                $1,400

          Ending balance of Accounts Receivable               34,000    35,400

Cash collected                                                                             $164,600

Uncollectible accounts expense:

  Ending balance of allowance for doubtful accounts                $1,700

 Add Writes-off amount                                                                1,400

 Total                                                                                          $3,100

 Less Beginning balance of allowance for doubtful accounts     1,800

 Uncollectible Accounts Expense                                             $1,300

Ending balance of Accounts Receivable                                  $34,000

Less Allowance for Doubtful Accounts                                        1,700

Net realizable value of Accounts Receivable                           $32,300

Interest revenue recognized for the period = $40,000*6%

                                                                     = $2,400

Beginning balance of Interest Receivable                    $1,200

Add Interest income for the year                                    2,400

Total Interest Receivable                                              $3,600

Ending balance of Interest Receivable                           3,600

Nothing cash collection during the year                           0


Feb 20th, 2015

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