01 Jan The trial balance of M&D Inc. shows a $50,000 outs
The trial balance of M&D Inc. shows a $50,000 outstanding balance in accounts receivable at the end of the first year of operations, December 31, 2011. During the fiscal year, 75% of the total credit sales were collected and no accounts were written off as uncollectible. The company estimated that 1.5% of the credit sales would be uncollectible. During the following year, 2012, the account of J. Morgan, who owed $500, was judged uncollectible and was written off. At the end of the year, on December 31, 2012, the amount previously written off was collected in full from J. Morgan. Required: a. Prepare the necessary journal entries for recording all the preceding transactions in the accounting system of M&D Inc. b. Show the accounts receivable section of the balance sheet at December 31, 2011.