Eastern Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the

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Eastern Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the aging-of-accounts-receivable method. The company had the following account balances on August 31, 2023:image


The following transactions took place during September 2023:image


image



Required


1. Record the above transactions in the general journal. Show all amounts to two decimal places.


2. What would be the adjusting entry required on September 30 if the company used the percent-of-sales method with an estimate of uncollectibles equal to 8 percent of credit sales?


3. Which of the two methods of estimating uncollectible accounts would normally be more accurate? Why?

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Related Book For  book-img-for-question

Horngrens Accounting Volume 1

ISBN: 9780136889373

12th Canadian Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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