Munchener Corp.'s unadjusted trial balance includes the following balances: Accounts receivable Dr $150,000 Allowance for
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Question:
Munchener Corp.'s unadjusted trial balance includes the following balances:
Accounts receivable Dr $150,000
Allowance for doubtful accounts Cr. $ 3,500
Sales (all on credit) Cr. 720,000
Sales returns and allowances 30,000
Questions
- prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (a) 5% of gross accounts receivable and (b) 2% of net sales.
- Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $3,500 instead of a credit balance.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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