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ACC - WannaBee Corporation




Question;WannaBee Corporation has $1,500,000 of Receivables on December 31, 2000. WannaBee uses the Allowance Method and historical data indicates 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 $250,000AR-BusyBody $75,000 AR-AlphaBetCo $130,000AR-DippyDo $55,000 AR-TipsyTurvy $98,000AR-MerryMen $145,000 AR-HappyHart $289,000AR-CurlyCues $211,000 AR-MityMan $47,000AR-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 phone for 8 months.PrettyPenny paid its account.NannyNancy paid $150,000 and on November 21 made a 120 note at 4% APR for the remainder.AlphaBetCo paid its account in full.TipsyTurvy has closed its business.HappyHart paid its bill.MityMan still owes its account.JumpingJax paid ? its bill and will not pay the rest.The Receivables balance at the end of the year is $2,235,000Assignments:(1) Prepare the Required AJE for December 31, 2000.(2) Prepare the Required AJE for December 31, 2001.


Paper#40045 | Written in 18-Jul-2015

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