During Burns Companys first year of operations, credit sales totaled $146,000 and col-lections on credit sales totaled
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During Burns Company’s first year of operations, credit sales totaled $146,000 and col-lections on credit sales totaled $108,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $330 of specific accounts as uncollectible.
Required: Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. Show the year-end balance sheet presentation for accounts receivable.
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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