Question

The balance of the accounts receivable account of Griffin Ltd. at December 31, 2019 was $74,460....

The balance of the accounts receivable account of Griffin Ltd. at December 31, 2019 was $74,460. Included in this balance are the credit balances of two customers, amounting to $3,200 and $1,800.

Required:

1. What amount for accounts receivable would be shown as assets on the balance sheet?

2. How would the credit balances in the customers’ accounts be   disclosed?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2
  1. Accounts receivable is current asset of a company and it will have debit balance. The closing debit balance will be shown in asset side of balance sheet. Here in the case given two customer account included in accounts receivables has credit balances. The credit balance from customer would be due to advance received from customer. The amount to be shown as account receivable is $79,460 (i.e $74,460 + $3,200 + $1,800 )
  2. The credit balance in the customer account $ 5,000 ( $3,200 + $1,800 ) should be disclosed as advance received from customers in the liability side under current liabilities.
answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts receivable $200,000 Allowances for uncollectible accounts $12,000 CR Credit sales in 2019 $700,000 Credit sales return in 2019 $100,000 In addition, the firm has given up trying to collect a $9,500 receivable from a customer who recently declared bankruptcy. Linn's management has not yet written off the amount but intends to do so before the books are closed for the year. Required: I. Assuming...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts receivable $200,000 Allowances for uncollectible accounts $12,000 CR Credit sales in 2019 $700,000 Credit sales return in 2019 $100,000 In addition, the firm has given up trying to collect a $9,500 receivable from a customer who recently declared bankruptcy. Linn's management has not yet written off the amount but intends to do so before the books are closed for the year. Required: I. Assuming...
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000 balance in its Accounts Receivable and...
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000 balance in its Accounts Receivable and a $9,800 balance in its Allowance for Doubtful Accounts. During 2020, the company made total sales of $902,000, of which $218,000 were cash sales. By the end of the year, Mills had received payments of $598,000 from its customers on account. The company also wrote off as uncollectible $13,800 of its receivables when it learned that these customers had declared bankruptcy. The company was...
At December 31, the Azuza Company had a balance of $754,000 in its Accounts Receivable account...
At December 31, the Azuza Company had a balance of $754,000 in its Accounts Receivable account and a credit balance of $9,000 in the Allowance for Doubtful Accounts account. The company aged its accounts as follows: Current $608,000 0–60 days past due 88,000 61–180 days past due 40,000 Over 180 days past due 18,000 $754,000 In the past, the company has experienced credit losses as follows: one percent of current balances, five percent of balances 0–60 days past due, 20...
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $377,800...
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $377,800 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $383,000 in debit balances and $5,200 in credit balances. The company aged its accounts as follows: Current $306,000 0-60 days past due 46,000 61-180 days past due 20,000 Over 180 days past due 11,000 $383,000 In the past, the company...
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $386,600...
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $386,600 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $392,000 in debit balances and $5,400 in credit balances. The company aged its accounts as follows: Current $308,000 0-60 days past due 49,000 61-180 days past due 21,000 Over 180 days past due 14,000 $392,000 In the past, the company...
Accounting for Receivables Solve the Following Problems At December 31, 2019, Carl’s Toys had a balance...
Accounting for Receivables Solve the Following Problems At December 31, 2019, Carl’s Toys had a balance of $248,100 in its Accounts Receivable account and a credit balance of $900 in its Allowance for Doubtful Accounts account. Carl’s Toys analyzed and aged its accounts receivable based on the following estimated uncollectible amounts: Age of Accounts Receivables Balance Estimated % Uncollectible Current $ 130,500 0.6% 31 to 60 day 66,300 2.0% 61 to 90 days 26,700 5.5% Over 91 days    24,600...
22. The December 31, 2018 balance sheet of Barone Company had Accounts Receivable of $400,000 and...
22. The December 31, 2018 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2019, the following transactions occurred: sales on account, $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off, $36,000; previously written off accounts of $6,000 were collected. (a)   Journalize the 2019 transactions listed above. (b)   Prepare the journal entry to record bad debt expense for 2019 assuming that the company...
December​ 31, 2016​, Warm Weather Travel has an Accounts Receivable balance of $ 89,000. Allowance for...
December​ 31, 2016​, Warm Weather Travel has an Accounts Receivable balance of $ 89,000. Allowance for Doubtful Accounts has a credit balance of $ 870 before the​ year-end adjustment. Service revenue​ (all on​ account) for 2016 was $ 650,000. Warm Weather estimates that​ doubful-account expense for the year is 4​% of service revenue. Requirement 1. Make the​ year-end entry to record​ doubtful-account expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet at December​...
Ahmad Co.'s trial balance included the following account balances at December 31, 2013: Accounts receivable $12,000...
Ahmad Co.'s trial balance included the following account balances at December 31, 2013: Accounts receivable $12,000 Inventories 40,000 Patent 12,000 Investments 30,000 Prepaid insurance 6,000 Note receivable, due 2016 50,000 Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next two years. What amount should be included in the current asset section of Ahmad's December 31, 2013, statement of financial position?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT