The following data are available on December 31, 2008 for TED Company, before any adjustment for...
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The following data are available on December 31, 2008 for TED Company, before any adjustment for doubtful accounts. Debit 840,000 20,000 175,000 Ted Company is considering the following methods in estimating its doubtful accounts: Method 1 - Aging of Accounts Receivable - the estimate is 96,200. Method 2 - 60% of Sales is credit sales and 4% of credit sales maybe uncollectible. Required: Calculate the following under the 2 methods mentioned above. Accounts receivable Allowance for doubtful accounts Sales Sales returns 1. Doubtful Accounts Expense 2. Net Realizable Value Method 1 Method 2 Credit 1,700,000 The following data are available on December 31, 2008 for TED Company, before any adjustment for doubtful accounts. Debit 840,000 20,000 175,000 Ted Company is considering the following methods in estimating its doubtful accounts: Method 1 - Aging of Accounts Receivable - the estimate is 96,200. Method 2 - 60% of Sales is credit sales and 4% of credit sales maybe uncollectible. Required: Calculate the following under the 2 methods mentioned above. Accounts receivable Allowance for doubtful accounts Sales Sales returns 1. Doubtful Accounts Expense 2. Net Realizable Value Method 1 Method 2 Credit 1,700,000
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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