A company reports the following amounts at the end of the year (before adjustment): (If no...
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A company reports the following amounts at the end of the year (before adjustment): (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Credit sales for the year Accounts receivable Allowance for uncollectible accounts $ 122,000 31,000 1,600 (credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method, assuming the company estimates 10% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method, assuming the company estimates 4% of credit sales will not be collected. A company reports the following amounts at the end of the year (before adjustment): (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Credit sales for the year Accounts receivable Allowance for uncollectible accounts $ 122,000 31,000 1,600 (credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method, assuming the company estimates 10% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method, assuming the company estimates 4% of credit sales will not be collected.
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Adjusting entry for uncollectible accounts using the percentageofreceivables method Step 1 Calculate ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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