WannaBee Corporation has $1,500,000 of Receivables on December 31, 2000. WannaBee uses the Allowance Method and historical data indicates that 7% of receivables become uncollectible. The end of year balance in the ADA is 0. The following are the 2000 end of year receivables.AR- Goodboy ……… $25,000AR-BusyBody ……… $75,000AR-DippyDo ………. $55,000AR-MerryMen ……… $145,000AR-CurlyCues ……… $211,000AR-PrettyPenny ……… $109,000AR-NannyNancy …….. $250,000AR-AlphaBetCo ……… $130,000AR-TipsyTurvy …….. $98,000AR-HappyHart ……… $289,000AR-MityMan ……… $47,000AR-JumpingJax ……… $66,000During 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.View Solution:
WannaBee Corporation has 1 500 000 of Receivables on December 3



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