Skip to main contentAssignment #$7-$ Ch $8(2\mathrm{.}5\%)$AnswerSavedHelp opens in a new windowSave & ExitSubmit

Item$1$

$26$

points

Time Remaining $3$ hours $21$ minutes $36$ seconds$03$:$21$:$36$

Item $1$

Time Remaining $3$ hours $21$ minutes $36$ seconds$03$:$21$:$36$

Swiss Supplies showed the following selected adjusted balances at its December $31,2022,$ year$-$end:

Accounts Receivable

Dec. $31/22$ Balance $470,000$

Allowance for Doubtful Accounts

$17,200$ Dec. $31/22$ Balance

During $2023,$ the following selected transactions occurred:

Sales totalled $$2,860,000,$ of which $25\%$ were cash sales $($cost of sales $$1,843,000).$

Sales returns were $$110,000,$ half regarding credit sales. The returned merchandise was scrapped.

An account for $$26,000$ was recovered.

Several accounts were written off: $$28,000.$

Collections from credit customers totalled $$1,820,000($excluding the recovery in $($c$)$ above$).$

Part A

Required:

$1.$ Journalize transactions $($a$)$ through $($e$).$ You may find it useful to post your entries to T$-$accounts for Accounts Receivable and Allowance for Doubtful Accounts.

Part B

Required:

$2.$ Prepare the December $31,2023,$ adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be $1\%$ of net credit sales.

$3.$ Show how accounts receivable will appear on the December $31,2023,$ balance sheet.

$4.$ What will bad debt expense be on the income statement for the year ended December $31,2023?$

Part C $($independent of Part B$)$

Required:

$5.$ Prepare the December $31,2023,$ adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be $3\%$ of outstanding receivables.

$6.$ Show how accounts receivable will appear on the December $31,2023,$ balance sheet.

$7.$ What will bad debt expense be on the income statement for the year ended December $31,2023?$