Reference no: EM132473654

Sigmund Company completed the following transactions in 2012:

Point 1: Jan. 9 Sold merchandise on account to Roger's Supply, $1,200.

Point 2: Jan. 15 Wrote off the account of Pete Ramirez as uncollectible because of his death, $500.

Point 3: Mar. 17 Received $450 from Roland Co., whose account had been written off in 2011. The account was reinstated and the collection recorded.

Point 4: Apr. 9 Received 18% of the $4,100 owed by Lane Danks. The remainder was written off as uncollectible.

Point 5: June 15 The account for Mae's Garage was reinstated for $1,500. The account was written off three years ago and collected in full today.

Point 6: Oct. 18 Prepared a compound entry to write the following accounts off as uncollectible: Jim's Diner, $220; Kross Auto, $460; Reece's Hardware, $800.

Point 7: Nov. 12 Sold merchandise on account to J.B. Rug, $2,200.

Point 8: Dec. 31 Based on an aging of Accounts Receivable, it was estimated that $7,000 will be uncollectible out of a total of $165,000 in Accounts Receivable.

Point 9: Dec. 31 Closed Bad Debts Expense to Income Summary.

From these transactions as well as the following additional data, complete

Acct. No.                                                       Balance

Allowance for Doubtful Accounts 114                   $4,200

Income Summary                                         312

Bad Debt Expense                                        612

Question a. Journalize the transactions.

Question b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed.

Question c. Prepare current assets section of the balance sheet. Ending balances needed are as follows: Cash, $13,500; Accounts Receivable, $165,000; Office Supplies, $2,100; Merchandise Inventory, $105,000; Prepaid Rent, $1,350