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Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Required: 1. Record the adjustment for uncollectible

Question:

Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).

Credit Sales for 2021 $260,000 Accounts Receivable, December 31, 2021 55,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (credit)


Required:

1. Record the adjustment for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected.

2. Record the adjustment for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected.

3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method.

Transcribed Image Text:

Credit Sales for 2021 $260,000 Accounts Receivable, December 31, 2021 55,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (credit)

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Financial Accounting

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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Question Details
Chapter # 5- Receivables and Sales
Section: Exercises
Problem: 19
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Question Posted: May 14, 2020 05:28:55
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