Scenario A. Percentage of Sales: Apple Company reported the following balances as of December 31, 20X1,...

 

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Scenario A. Percentage of Sales: Apple Company reported the following balances as of December 31, 20X1, before any year-end adjustments: Accounts receivable Allowance for doubtful accounts Sales The entity estimated that 5% of the sales would be uncollected. Compute for the following: 1. Allowance for doubtful accounts as of December 31, 20X1 2. Doubtful accounts expense on December 31, 20X1 3. Carrying amount of the accounts receivable as of December 31, 20X1 Scenario B. Percentage of Accounts Receivable Apple Company reported the following balances as of December 31, 20X1, before any year-end adjustments: Accounts receivable Allowance for doubtful accounts 5,000,000 150,000 10,000,000 The entity estimated that 15% of the Accounts Receivable would be uncollected. Compute for the following: 4. Allowance for doubtful accounts as of December 31, 20X1 5. Doubtful accounts expense on December 31, 20X1 6. Carrying amount of the accounts receivable as of December 31, 20X1 5,000,000 150,000 Scenario A. Percentage of Sales: Apple Company reported the following balances as of December 31, 20X1, before any year-end adjustments: Accounts receivable Allowance for doubtful accounts Sales The entity estimated that 5% of the sales would be uncollected. Compute for the following: 1. Allowance for doubtful accounts as of December 31, 20X1 2. Doubtful accounts expense on December 31, 20X1 3. Carrying amount of the accounts receivable as of December 31, 20X1 Scenario B. Percentage of Accounts Receivable Apple Company reported the following balances as of December 31, 20X1, before any year-end adjustments: Accounts receivable Allowance for doubtful accounts 5,000,000 150,000 10,000,000 The entity estimated that 15% of the Accounts Receivable would be uncollected. Compute for the following: 4. Allowance for doubtful accounts as of December 31, 20X1 5. Doubtful accounts expense on December 31, 20X1 6. Carrying amount of the accounts receivable as of December 31, 20X1 5,000,000 150,000

Answer rating: 100% (QA)

Scenario a 1 Unadjusted allowance for doubtful accounts is 150000 Estimate... View the full answer