Problem 4: Income Statement Approach Percentage of Sales year of operations for C'est Cheese ...
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Problem 4: Income Statement Approach – Percentage of Sales year of operations for C'est Cheese – had $200,000 in credit sales, and by December 31, 2018, $160,000 had been received from customers. What is the balance in accounts receivable at December 31, 2018? First Year-end Estimate: At December 31, 2018, company believes that 2% of total credit sales for the year will not be collectable. Prepare the necessary journal entry at December 31, 2018. What is net accounts receivable at December 31, 2018? Write-off: On January 8, 2019, C'est Cheese learns that one customer has gone bankrupt and will not be able to pay their $1,500 account. Write journal entry: What are the two accounts affected by the write-off journal entry? What types of accounts are they? What effect does the January 8, 2019, write-off have on net income for 2018? What is the reasoning for your answer? What effect does the January 8, 2019, write-off have on net income for 2019? What is the reasoning for your answer? Notes Problems What effect does the January 8, 2019 write-off have on net accounts receivable during 2019? What is the reasoning for your answer? Allowance for Accounts Receivable uncollectible accounts Net A/R + + Problem 4: Income Statement Approach – Percentage of Sales year of operations for C'est Cheese – had $200,000 in credit sales, and by December 31, 2018, $160,000 had been received from customers. What is the balance in accounts receivable at December 31, 2018? First Year-end Estimate: At December 31, 2018, company believes that 2% of total credit sales for the year will not be collectable. Prepare the necessary journal entry at December 31, 2018. What is net accounts receivable at December 31, 2018? Write-off: On January 8, 2019, C'est Cheese learns that one customer has gone bankrupt and will not be able to pay their $1,500 account. Write journal entry: What are the two accounts affected by the write-off journal entry? What types of accounts are they? What effect does the January 8, 2019, write-off have on net income for 2018? What is the reasoning for your answer? What effect does the January 8, 2019, write-off have on net income for 2019? What is the reasoning for your answer? Notes Problems What effect does the January 8, 2019 write-off have on net accounts receivable during 2019? What is the reasoning for your answer? Allowance for Accounts Receivable uncollectible accounts Net A/R + +
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Balance in account receivable on Dec 31 st Credit sales collection from customers 200000160000 40000 ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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