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##### Need help with accounts receivable homework

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Question;Scenario;You are the;Accountant for WanneBee Corporation;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 \$250,000;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;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;\$2,235,000;Assignments;Prepare the Required AJE for December 31;2000.Prepare the Required AJE for December 31;2001.

Paper#40059 | Written in 18-Jul-2015

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