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Financial & Managerial Accounting
Found in: Page 348
Financial & Managerial Accounting

Financial & Managerial Accounting

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

Short Answer

At December 31, 2017, Hawke Company reports the following results for its calendar year.

Cash sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,905,000

Credit sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,682,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . $1,270,100 debit

Allowance for doubtful accounts . . . . . . . . . . . . . 16,580 debit

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a

Answer

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 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
AssetsAmount($)
Current assets
Accounts receivables1,270,10
Less: Allowance for doubtful accounts68,65
1,204,450

Step 2: Notes to accounts

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