Blossom Company's ledger at the end of the current year shows Accounts Receivable $72,400; Sales on Credit
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Question:
Blossom Company's ledger at the end of the current year shows Accounts Receivable $72,400; Sales on Credit $784,350; and Sales Returns and Discounts $36,080.
(a) | If Blossom Company uses the direct write-off method to account for uncollectible accounts, record the adjusting entry as of December 31, assuming the Blossom Company determines that Matisse's $810 balance is uncollectible. | |
(b) | If the Allowance for Doubtful Accounts has a credit balance of $1,157 on the trial balance, record the adjusting entry as of December 31, assuming bad debts are expected to be 10% of accounts receivable. | |
(C) | If the Allowance for Doubtful Accounts has a debit balance of $450 on the trial balance, record the adjusting entry as of December 31, assuming bad debts are expected to represent 7% of accounts receivable. | |
How would this be recorded? |
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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