Determine the amount to be paid in full settlement of each of two invoices, (a) and...

 
 

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Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Freight Terms Merchandise Freight Paid by Seller a. $6,700 $500 b. 4,700 400 FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Credit for Refunds and Allowances $1,500 1,100 a. $ b. $ Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $680,000, Allowance for Doubtful Accounts has a debit balance of $6,000, and sales for the year total $3,060,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $27,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Freight Terms Merchandise Freight Paid by Seller a. $6,700 $500 b. 4,700 400 FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Credit for Refunds and Allowances $1,500 1,100 a. $ b. $ Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $680,000, Allowance for Doubtful Accounts has a debit balance of $6,000, and sales for the year total $3,060,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $27,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.