Determine the amount to be added to allowance for Doubtful Accounts in each of the following cases
Question:
(a) Credit balance of $460in Allowance for Doubtful Accounts Just prior to adjustment. Analysis of Accounts Receivable indicates uncollectable receivables of $7,800.
Amount added: $ Ending balance: $
(b) Credit balances of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 1% of credit sales, which totaled $1,165,000 for the year.
Amount added: $ Ending balance: $
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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