Pharoah Company reported the following information in its general ledger at December 31.

All sales were on account. At the end of the year, uncollectible accounts were estimated to be 10% of accounts receivable.

(a)

Using your knowledge of receivables transactions, determine the missing amounts. (Hint: You may find it helpful to reconstruct the journal entries.)

Accounts Receivable

Beg. bal.

15,000

36,700

(a)

End. bal. (c)

(b) Finf missing

To solve this problem, we need to reconstruct the transactions related to Accounts Receivable (AR) and use the given information to determine the missing amounts.

Here's a breakdown of the steps:

### Step 1: Analyze the given data
- **Beginning balance of AR**: $15,000
- **Total credit sales during the year**: $36,700
- **Ending balance of AR**: (c) (to be found)
- **Uncollectible accounts estimated at 10% of AR**

### Step 2: Set up the AR account (T-account)

Accounts Receivable T-account:
\[
\begin{array}{c|c}
\text{Debit (Increases)} & \text{Credit (Decreases)} \\
\hline
\text{(a) Beginning Balance} & \\
\$15,000 & \text{(b) Collections during the year} \\
\text{(c) Sales on Account (during the year)} & \\
\$36,700 & \text{(d) Write-offs (Uncollectible Accounts)} \\
& \text{Ending Balance (c)} \\
\end{array}
\]

### Step 3: Determine missing amounts

**Collections during the year (b)**: This is the amount of cash collected from customers during the year. Since it decreases AR, we'll place it on the credit side of the T-account.

**Ending Balance (c)**: This is the ending balance of AR at the end of the year.

**Write-offs (d)**: This is the amount of uncollectible accounts that will be written off, which will decrease AR.

### Step 4: Apply the equation for AR

The basic equation for AR is:
\[
\text{Beginning Balance} + \text{Sales} - \text{Collections} - \text{Write-offs} = \text{Ending Balance}
\]
Substituting the known values:
\[
15,000 + 36,700 - (b) - (d) = (c)
\]

### Step 5: Use the information about uncollectible accounts

Uncollectible accounts are estimated to be 10% of the ending balance:
\[
d = 0.10 \times (c)
\]

### Step 6: Solve the equations

Now, solve for the unknowns.

1. The first equation is:
   \[
   51,700 - b - 0.10c = c
   \]
   Simplifying:
   \[
   b = 51,700 - 1.10c
   \]

2. If we had more information, like the actual ending balance or the total collections, we could plug those values in to find the exact amounts. Without more data, we cannot solve for exact numbers.

However, based on the provided setup, you can solve the equations to find the missing values if any additional data or constraints are given. 

Would you like me to proceed with an example or guide you on solving it with potential scenarios?

Learn how to calculate missing amounts in Accounts Receivable transactions using journal entries and estimation of uncollectible accounts. This problem involves reconstructing journal entries and applying basic accounting principles. Suitable for college-level students and professionals.

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