The Carlyle Company began operations on January 1, 20X0. During January the com- pany had net...
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The Carlyle Company began operations on January 1, 20X0. During January the com- pany had net credit sales of $800,000. The company estimates that 4% of the net credit sales will become uncollectible and sets up an allowance account based on this assumption. Cash of $600,000 was collected from customers in payment of their accounts. Specific accounts totaling $14,000 were written off during the month. What would be the balances in the Allowance for Doubtful Accounts and the Uncollectible Accounts Expense at the end of January after the necessary adjusting entry? The Carlyle Company began operations on January 1, 20X0. During January the com- pany had net credit sales of $800,000. The company estimates that 4% of the net credit sales will become uncollectible and sets up an allowance account based on this assumption. Cash of $600,000 was collected from customers in payment of their accounts. Specific accounts totaling $14,000 were written off during the month. What would be the balances in the Allowance for Doubtful Accounts and the Uncollectible Accounts Expense at the end of January after the necessary adjusting entry?
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Calculation of the Estimated Uncollectible Accounts Net credit sales 800000 Estimated uncollectible ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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