Handy Andy Inc. has the following balances: Accounts receivable $ 1,254,000 Allowance for doubtful accounts $ 32,670
Fantastic news! We've Found the answer you've been seeking!
Question:
Handy Andy Inc. has the following balances:
Accounts receivable $ 1,254,000
Allowance for doubtful accounts $ 32,670 (Credit Balance)
Net Credit Sales $ 2,941,000
a.If the company estimates that 4% of its receivables will be uncollectible, what would the journal entry look like? (5 points)
b.What is the net realizable value for letter a? (2 points)
c.If the company estimates that 1% of its sales will be uncollectible, what would the journal entry look like? (5 points)
d. What is the net realizable value for letter c? (2 points)
Use the following tables if needed.
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date: