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Q2PSA_3

Expert-verified
Found in: Page 348

### Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

# At December 31, 2017, Hawke Company reports the following results for its calendar year.Cash sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,905,000 Credit sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,682,000In addition, its unadjusted trial balance includes the following items.Accounts receivable . . . . . . . . . . . . . . . . . . . . . . .$1,270,100 debit Allowance for doubtful accounts . . . . . . . . . . . . . 16,580 debit2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a

The amount of accounts receivables and the allowance for doubtful accounts will appear on the assets side of the organization’s balance sheet under the head of current assets.

See the step by step solution

## Step-by-Step SolutionStep 1: Meaning of Accounts Receivable

When a business entity sells goods on credit, and the amount is due from the customers to the business, that particular amount is termed as accounts receivables.

## Step 1: Indication of the amounts in balance sheet

 Balance Sheet Assets Amount(\$) Current assets Accounts receivables 1,270,10 Less: Allowance for doubtful accounts 68,65 1,204,450