During its first year of operations, Atlas Travel earned revenue of $400,000 on account. Industry experience suggests
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During its first year of operations, Atlas Travel earned revenue of $400,000 on account. Industry experience suggests that Atlas Travel’s bad debts will amount to 2% of revenues. On December 31, 2013, accounts receivable total $90,000. The company uses the allowance method to account for un-collectibles.
Journalize Atlas Travel’s Bad Debt Expense using the percentage of sales method. Show how Atlas should report Accounts Receivable on its balance sheet on December 31, 2013.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Journal DATE ACCOUNTS POST REF DR CR 1 UncollectibleA...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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