Accounting Problem--Trial Balance

May 2010
1
0
The ff. are selected balances taken from the adjusted trial balance of Morgan Industries as of March 17, 2009:

Accounts Receivable 120,000
Allowance for Doubtful Accounts 6, 000
Sales 750, 000
Sales Returns and Allowances 1, 500
Sales Discount 600


For the year 2010, the ff. transaction took place:

a. Sales amounted to $ 1,500,000 of which 60% is on credit, which terms of 2/10, n/30.
b. Collections from account customers amounted to $800, 000 out of which $388, 400 were collected outside the discount period.
c. Sales Returns and Allowances amounted to $1, 800 out of which $900 cash refunds were given to customers.


Directions:
a. Compute for the balance of the accounts receivable as of March 17, 2009. Use T-Accounts
b. Give the adjusting entry. Support with an Allowance for Doubtful Accounts T-account.



How do I balance this financial statement? I need to record the transactions in there entirety and find the balance for accounts recievable and allowance for doubtful accounts.
 
Dec 2007
3,184
558
Ottawa, Canada
The ff. are selected balances taken from the adjusted trial balance of Morgan Industries as of March 17, 2009:
Accounts Receivable 120,000

a. Compute for the balance of the accounts receivable as of March 17, 2009. Use T-Accounts
120,000 (given!).

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