Question

82) Record entries for the following transactions for Riviera Company. Riviera Company maintains an allowance account.

a)Sold merchandise on account to Carver Company, $2,800.

b)Sold merchandise on account to Gwinett Company, $1,670.

c)Write off both the Carver Company and the Gwinett Company accounts.

d)Carver Company unexpectedly paid off its account in full.

83) Compute net accounts receivable for the following independent situations.

a)Accounts receivable has a balance of $16,000. The allowance for doubtful accounts has a credit balance prior to adjustment of $350. An aging schedule prepared on December 31 reveals $1,250 of uncollectible accounts.

b)Accounts receivable has a balance of $17,500. The allowance for doubtful accounts has a debit balance prior to adjustment of $560. An aging schedule prepared on December 31 reveals $1,500 of uncollectible accounts.

c)Accounts receivable has a balance of $15,500. The allowance for doubtful accounts has a debit balance prior to adjustment of $760. Net credit sales for the year are $35,000 and 3.5% of net credit sales are deemed uncollectible.

d)Accounts receivable has a balance of $20,200. The allowance for doubtful accounts has a credit balance prior to adjustment of $460. Net credit sales for the year are $35,000 and 4.5% of net credit sales are deemed uncollectible.