• The accounting records of Sine.Com Ltd$.$ provided the following for $20$X$9$: Balance in accounts receivable, $1$ January $20$X$9$ $ $90,000$ Balance in accounts receivable, $31$ December $20$X$9120,000$ Balance in allowance for doubtful accounts, $1$ January $20$X$93,000($cr$.)$ Accounts already written off as uncollectible during $20$X$95,500$ a$.$ Six percent of the uncollected accounts receivable at year$-$end will be uncollectible. b$.$ Aging of the accounts receivable at the end of the period indicated that $80\%$ would incur a $2\%$ loss, while the remaining $20\%$ would incur a $10\%$ loss. Required: $1.$ For each of the two alternatives listed above, give the following: a$.20/9$ adjusting entry b$.$ Ending $20$X$9$ balance in the allowance account c$.$ An evaluation of the alternative $2.$ Explain which of the two alternatives you would recommend.

  
  

Answer rating: 100% (QA)

Alternative 1 Six percent of the uncollected accounts receivable at yearend will be uncollectible a Adjusting Entry for 20X9 Allowance for Doubtful Ac... View the full answer