ulyLipress uD ue and collected cash from custo y Exp pe ress

ulyLipress uD, ue and collected cash from custo y Exp pe ress wrote off uncollectible receivables and made other adjustments as necessary. At year-end Delivery Expres mers. Assume uncollectible-account ex not required). (R sumed Data Table es. hich rnal E October 31, 2015 2014 3,200 (230) S 3,900 Accounts receivable .. Less: Allowance for uncollectible accounts . (130) . s 3,770 2,970 ere $2 Print Done rnal E Debit Credit in the input fields and then continue to the next questicon

Solution

Fig.in mlns. 1 Account Title Debit Credit a. Cash (11%*32200) 3542 Accounts Receivables(32200-3542) 28658 Service Revenue 32200 b. Cash 27478 Accounts Receivables 27478 c. Bad debt expense(1%*28658) 286.58 Allowance for Uncollectibles 286.58 d. Allowance for Uncollectibles 387 Accounts Receivables 387 e. Oct.1 7% Note Receivable 135 Accounts Receivables 135 Oct.31 Interest Receivable(135*7%/12) 0.7875 Interest revenue 0.7875 f. Accounts Receivables 42 Cash 42 60529.3675 60529.37 Fig.in mlns. 2.   LEDGER ACCOUNTS (Posting of above Journal entries) Debit Credit e. Oct.1 7% Note Receivable 135 Oct,31,2014 Beginning Balance 3200 b. Accounts Receivables 27478 d. Accounts Receivables 387 e. Oct.1 Accounts Receivables 135 f. Accounts Receivables 42 a. Accounts Receivables(32200-3542) 28658 Oct.31,2015 Ending Balance 3900 Oct,31,2014 Beginning Balance 230 c. Allowance for Uncollectibles 286.58 d. Allowance for Uncollectibles 387 Oct.31,2015 Ending Balance 129.58 c. Bad debt expense(1%*28658) 286.58 b. Cash 27478 f. Cash 42 a. Cash (11%*32200) 3542 Oct.31,2015 Ending Balance 30978 Oct.31 Interest Receivable(135*7%/12) 0.7875 Oct.31 Interest revenue 0.7875 a. Service Revenue 32200 3..Comparison of Ending balances As per above Actual given Accounts receivables 3900 3900 Allowance for Uncollectibles 129.58 130 ie. 130 Fig.in mlns. Delivery Express expects to collect from its customers afterOct.31,2015= Net realisble amount of its accounts receivables= accounts receivables-Allowance for Uncollectibles= 3900-130= 3770 Millions 4.. Effect on Net Income for Yr. ended Oct.31,2015 Service Revenue 32200 Bad debt expense(1%*28658) 286.58 Interest revenue 0.7875 Net effect 31914.2075 ie. 31914.2075 millions