You are the Accountant for WanneBeeCorporation
WannaBee Corporation has $1,500,000 of Receivables on December31, 2000. WannaBee uses the Allowance Method and historical dataindicates that 7% of receivables become uncollectible. The end of year balance in the ADA is 0.
The following are the 2000 end of year receivables.
AR-Goodboy $25,000 AR-NannyNancy $250,000
AR-BusyBody $75,000 AR-AlphaBetCo $130,000
AR-DippyDo $55,000 AR-TipsyTurvy $98,000
AR-MerryMen $145,000 AR-HappyHart $289,000
AR-CurlyCues $211,000 AR-MityMan $47,000
AR-PrettyPenny $109,000 AR-JumpingJax $66,000
During 2001 the following events occurred:
Goodboy defaulted.
BusyBody declared bankruptcy but paid$19,000.
DippyDo paid the account in full.
MerryMen still owes $48,000.
CurlyCues has not answered the phonefor 8 months.
PrettyPenny paid its account.
NannyNancy paid $150,000 and onNovember 21 made a 120 note at 4% APR for theremainder.
AlphaBetCo paid its account infull.
TipsyTurvy has closed itsbusiness.
HappyHart paid its bill.
MityMan still owes its account.
JumpingJax paid ½ its bill and willnot pay the rest.
The Receivables balance at the end of the year is $2,235,000
1. Prepare the Required AJE for December 31,2000.
2. Prepare the Required AJE for December 31,2001.
(AJE stands for Adjusted Journal Entry)
You are the Accountant for WanneBeeCorporation
WannaBee Corporation has $1,500,000 of Receivables on December31, 2000. WannaBee uses the Allowance Method and historical dataindicates that 7% of receivables become uncollectible. The end of year balance in the ADA is 0.
The following are the 2000 end of year receivables.
AR-Goodboy $25,000 AR-NannyNancy $250,000
AR-BusyBody $75,000 AR-AlphaBetCo $130,000
AR-DippyDo $55,000 AR-TipsyTurvy $98,000
AR-MerryMen $145,000 AR-HappyHart $289,000
AR-CurlyCues $211,000 AR-MityMan $47,000
AR-PrettyPenny $109,000 AR-JumpingJax $66,000
During 2001 the following events occurred:
Goodboy defaulted.
BusyBody declared bankruptcy but paid$19,000.
DippyDo paid the account in full.
MerryMen still owes $48,000.
CurlyCues has not answered the phonefor 8 months.
PrettyPenny paid its account.
NannyNancy paid $150,000 and onNovember 21 made a 120 note at 4% APR for theremainder.
AlphaBetCo paid its account infull.
TipsyTurvy has closed itsbusiness.
HappyHart paid its bill.
MityMan still owes its account.
JumpingJax paid ½ its bill and willnot pay the rest.
The Receivables balance at the end of the year is $2,235,000
1. Prepare the Required AJE for December 31,2000.
2. Prepare the Required AJE for December 31,2001.
(AJE stands for Adjusted Journal Entry)