Accounts Receivable A trial balance before adjustment included the following:

Debit Credit 12/31/20X4 Accounts receivable $41,600 Allowance for doubtful accounts $2,000 Credit sales $430,000 Credit sales returns $15,000

Required:

a) What adjusting journal entry is needed for uncollectible accounts assuming it is determined based on 1% of net credit sales?

b) What adjusting journal entry is needed for uncollectible accounts assuming it is determined based on 5% of gross accounts receivable?

c) The strength of the income statement approach used in part (a) is that it provides better _______________ of expenses with applicable _______________.

d) The strength of the balance sheet approach used in part (b) is that it provides a more accurate net _______________ value.

Answer rating: 100% (QA)

Problem 2 a Uncolllectible Accounts 4150 Accoun... View the full answer