Question: In this problem we continue our accounting for Aqua Elite

In this problem, we continue our accounting for Aqua Elite, Inc. from Chapter 6. Refer to the Continuing Problem in Chapters 5 and 6. Assume that all 13 of the spas Aqua Elite, Inc. sold in September were sold on account for $4,000 each. At September 30, Aqua Elite, Inc. estimates that 5% of the sales will not be collected.
Requirements
1. Calculate the ending balance in Accounts Receivable at September 30.
2. Journalize the entry to record Aqua Elite’s Bad Debt Expense for September.
3. How will Accounts Receivable be reflected on Aqua Elite’s balance sheet at September 30?

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  • CreatedJuly 08, 2015
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