Need help with accounts receivable homework

| July 29, 2018

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 ½ 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.

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