Question

b) JMK Corp. had the following situations during the last 4years of operation: i. The Allowance for Uncollectible Accounts hasa $2,100 credit balance prior to adjustment. Net credit salesduring 2011 are $750,000, and 4% are estimated to be uncollectible.Accounts Receivable has a balance of $125,000 on Dec 31, 2011. ii.The Allowance for Uncollectible Accounts has a $1,200 debit balanceprior to adjustment. Based on an aging schedule of accountsreceivable prepared on December 31, 2012, $18,500 of accountsreceivable are estimated to be uncollectible. Accounts Receivablehas a balance of $110,000 on Dec 31, 2012. iii. The Allowance forUncollectible Accounts has a $1,400 credit balance prior toadjustment. Based on an aging schedule of accounts receivableprepared on December 31, 2013, $25,000 of accounts receivable areestimated to be uncollectible. Accounts Receivable has a balance of$98,000 on Dec 31, 2013. iv. The Allowance for UncollectibleAccounts has a $750 debit balance prior to adjustment. Net creditsales during 2014 are $800,000, and 3% are estimated to beuncollectible. Accounts Receivable has a balance of $135,000 on Dec31, 2014.