Sell on Credit Corp.'s (SCC) aged accounts receivable list is available in Excel in the Project...

    

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Sell on Credit Corp.'s (SCC) aged accounts receivable list is available in Excel in the Project 1 Data file. Other pertinent facts include the following: SCC's balance in its "allowance for doubtful accounts" account on January 1, 20X7, was a $4,600 credit. On March 31, 20X7, SCC unexpectedly collected a $1,950 accounts receivable due from KML Corp. that it wrote off in 20X6. During the year, SCC wrote off a total of $3,800 in uncollectable accounts. SCC uses a balance sheet approach (aging method) to estimate its uncollectable accounts. Based on historical experience, SCC provides for bad debts as follows: Aging period 31-60 5% Days outstanding Historical percent loss 0-30 1% 61-90 10% > 91 30% Sell on Credit Corp.'s (SCC) aged accounts receivable list is available in Excel in the Project 1 Data file. Other pertinent facts include the following: SCC's balance in its "allowance for doubtful accounts" account on January 1, 20X7, was a $4,600 credit. On March 31, 20X7, SCC unexpectedly collected a $1,950 accounts receivable due from KML Corp. that it wrote off in 20X6. During the year, SCC wrote off a total of $3,800 in uncollectable accounts. SCC uses a balance sheet approach (aging method) to estimate its uncollectable accounts. Based on historical experience, SCC provides for bad debts as follows: Aging period 31-60 5% Days outstanding Historical percent loss 0-30 1% 61-90 10% > 91 30%

Answer rating: 100% (QA)

a Here are the journal entries required during the year and at yearend to properly reflect SCCs accounting for its bad debt expense and allowance for ... View the full answer