The June 30, 2014 statement of financial position of the APM Company included the following information: Accounts receivable $224,000. Less: Allowance for doubtful accounts 14,100
During the company’s fiscal year ending June 30, 2015, the following transactions occurred:
1. Sales on credit $874,600; 2. Collections on accounts previously written off 500; 3. Accounts receivable written off as uncollectible 13,800; 4. Collections of accounts receivable 841,000; 5. Bad debts were estimated to be 5% of accounts receivable.
Required
1. Prepare journal entries necessary for APM to record the preceding transactions. 2. Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts that will be disclosed on APM’s June 30, 2015 statement of financial position.