You are the Accountant for WanneBeeCorporation
WannaBee Corporation has $1,500,000 of Receivables on December31, 2000. WannaBee uses the Allowance Method and historical dataindicates 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 phonefor 8 months.
PrettyPenny paid its account.
NannyNancy paid $150,000 and onNovember 21 made a 120 note at 4% APR for theremainder.
AlphaBetCo paid its account infull.
TipsyTurvy has closed itsbusiness.
HappyHart paid its bill.
MityMan still owes its account.
JumpingJax paid ½ its bill and willnot pay the rest.
The Receivables balance at the end of the year is $2,235,000
1. Prepare the Required AJE for December 31,2000.
2. Prepare the Required AJE for December 31,2001.
You are the Accountant for WanneBeeCorporation
WannaBee Corporation has $1,500,000 of Receivables on December31, 2000. WannaBee uses the Allowance Method and historical dataindicates 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 phonefor 8 months.
PrettyPenny paid its account.
NannyNancy paid $150,000 and onNovember 21 made a 120 note at 4% APR for theremainder.
AlphaBetCo paid its account infull.
TipsyTurvy has closed itsbusiness.
HappyHart paid its bill.
MityMan still owes its account.
JumpingJax paid ½ its bill and willnot pay the rest.
The Receivables balance at the end of the year is $2,235,000
1. Prepare the Required AJE for December 31,2000.
2. Prepare the Required AJE for December 31,2001.
