[snowmist69]

I did some switching numbers around here are my new totals

31-60
106,400
8664
Total 115,064 then 17,260

61-90

57,442
6316
Total 63,758 then 15,940

I'm trying to help at the same time

[Just Looking]

Those numbers are right. Good job. So what do you have instead of the 87,002 now?

[snowmist69]

I have 72,114 now for the total.

I hope I'm getting closer because I need these for this partThis part of the question I did fine the part I don't understand is I'm suppose to compute the end-of-year balances(before adjustments) of accounts recievable and allowances for uncollectible accounts.

On my work it shows Accounts recievable was a debit of $442,341 and the balance for allowance for uncollectible accounts was a credit of $43,700. During the year the store had a sales on account of $3,722,000, a sales return and allowance of $60,000, worthless accounts written off $44,300, and collections from custormers of $3,211,000. What I don't understand is what does compute mean and what do I compute. I also have to prepare an analysis computing the estimated uncollectible accounts.
I can do the rest of my work I just don't understand this part I did the first part which was my original question, any help will be appreciated

[Just Looking]

$72114 is okay. I took all my numbers to two decimals and got a slightly different answer - like $1 different.

We might need to talk a little about the next part. What do you mean by: On my work it shows Accounts recievable was a debit of $442,341. Was that given to you in the problem? Is that possibly the amount A/R increased during the year or the beginning balance? The balance in the A/R account at 1/31 should equal your detail.

I want to make sure I am getting the right info here. Typically with the allowance for uncollectibe accounts, you will have a credit balance on the books. You will do an analysis like we just did to find out the estimated amount that you need, and then adjust the books to equal that.

[snowmist69]

I copied it like it was printedthe balance of accounts receivable was a debit of 442,341, and the balance of Allowance for uncollectible accounts was a credit of 43,700. During the year the store had sales on account of 3,722,00,sales returns and allowances of 60,000, worthless accounts written off 44,300, and collections from custormers of 3,211,000

So this is what I'm suppose to do now.
Compute the end-of year balances(before adjustments) of Accounts Recievable and Allowances for Uncollectible Accounts.

Prepare an analysis computing the estimated uncollectible accounts.

Then I figure the estimated uncollectible accounts expense for the year.

[snowmist69]

We completed the age analysis so I think we use it. So the new balance would be what we just did. I'm not sure

[snowmist69]

The 43,700 credit was the beginng balance before we did the analysis.

[Just Looking]

Okay, I see what they are saying. Your beginning balance in A/R was $442,341. I want you to do this work, so take the beginning balance, and adjust it by the transactions. You know your sales and your collections. The difference are accounts that haven't been paid yet. Also adjust by Returns & Allowances. When you write off bad debts, do you know the entry? I don't want to just give you the answers, but tell me what you think it is and we'll work through it. That way I know it will make sense to you when we are done.

When you have done that, we'll work on the Allowance for Doubtful Accts portion.

Also, ask if you don't understand the Returns & Allowances account.

[snowmist69]

Thanks for not giving me the answers I need to know how to do this. I think the entry would be Accounts recievable write off account,if you are talking about the journal entry. We did not go over any of this in class so I'm really just winging this and using your help.

[Just Looking]

No, not the journal entry yet. I want you to start with the beginning balance in A/R of $442,341 and then adjust it by the transactions (Sales, Returns, Collections, etc.). I think once you have done this, the whole problem is really going to make sense to you.

[snowmist69]

I'm guesing here but I think A/R would be 7,375,341
Uncollectible accounts I have 103,700

Then a write off 43,000

Now am I suppose to add the write off with the accounts uncollectible

[snowmist69]

43,300 is the write off, sorry about that.

[Just Looking]

It looks like you are basically just adding most of those numbers. You need to think about what effect each would have on A/R. At the time of a sale, a/r is increased. What happens with a collection? Do you understand what they mean by collection?

Let's just work with a/r for a moment. Don't look at uncollectibles until you understand a/r.

[snowmist69]

I was thinking collections was when someone didn't pay his/her debt.
Thanks for your help this is just my fourth class. Accounts recievable is when a company is going to receive cash.
I'm sorry I don't know much yet.

[Just Looking]

No, I understand why you said that - like someone "gets sent to collections". Here it means that was the amount of A/R that were collected, meaning the customer paid his bill.

Don't worry about it. You are working at it, and if you keep this up you will understand it soon. It is really important as Accounting builds on all these fundamentals, and if you understand this now it will make all your work easier in the future.

Okay, knowing what collections are, how does that affect your a/r number?

[snowmist69]

I have so far a total of 883,341,but that's without the write off which I have no clue as how to do. I'm also guessing that store returns are a decrease in A/R

[snowmist69]

Ingonore last post

[snowmist69]

If the collections were already collected then that wouldn't mean they are reievable would it?

[Just Looking]

I'm trying to figure out your 883341 number. Tell me how you got it. I promise we are getting closer. :)

[Just Looking]

If the collections were already collected then that wouldn't mean they are reievable would it?

When a sale is made, you debit A/R and credit Sales. When a collection is made, you debit cash and credit A/R. In other words, a collection decreases A/R. You have been paid - it is no longer receivable.