ACCTG 211 BSBIC Receivables Assignment

ACCTG 211 BSBIC Receivables AssignmentThis assignment has a value of 5 points.Scenario:You are the Accountant for WanneBee CorporationWannaBee Corporation has $1,500,000 of Receivables on December 31, 2000.WannaBee uses the Allowance Method and historical data indicates that 7% ofreceivables become uncollectible. The end of year balance in the ADA is 0.The following are the 2000 end of year receivables.AR- GoodboyAR-BusyBodyAR-DippyDoAR-MerryMenAR-CurlyCuesAR-PrettyPenny $25,000$75,000$55,000$145,000$211,000$109,000 AR-NannyNancyAR-AlphaBetCoAR-TipsyTurvyAR-HappyHartAR-MityManAR-JumpingJax $250,000$130,000$98,000$289,000$47,000$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 phone for 8 months.PrettyPenny paid its account.NannyNancy paid $150,000 and on November 21 made a 120 note at 4% APRfor the remainder.AlphaBetCo paid its account in full.TipsyTurvy has closed its business.HappyHart paid its bill.MityMan still owes its account.JumpingJax paid ½ its bill and will not pay the rest.The Receivables balance at the end of the year is $2,235,000Assignments:(1) Prepare the Required AJE for December 31, 2000.(2) Prepare the Required AJE for December 31, 2001. Page 1

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