The following selected accounts are for Keystone, Inc., a name brand shoe wholesale store, as of...

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The following selected accounts are for Keystone, Inc., a name brand shoe wholesale store, as of 2009 December 31. Prior to closing the accounts and making allowance for uncollectible accounts entries, the USD 5,000 account of Morgan Company is to be written off (this was a credit sale of 2009 February 12). Accounts receivable Allowance for uncollectible accounts (credit) Sales Sales returns and allowances $360,000 6,000 1,680,000 30,000 a. Prepare journal entries to record all of these transactions and the uncollectible accounts expense for the period. Assume the estimated expense is 2 percent of net sales. b. Give the entry to record the estimated expense for the period if the allowance account is to be adjusted to 5 percent of outstanding receivables instead of as in. The following selected accounts are for Keystone, Inc., a name brand shoe wholesale store, as of 2009 December 31. Prior to closing the accounts and making allowance for uncollectible accounts entries, the USD 5,000 account of Morgan Company is to be written off (this was a credit sale of 2009 February 12). Accounts receivable Allowance for uncollectible accounts (credit) Sales Sales returns and allowances $360,000 6,000 1,680,000 30,000 a. Prepare journal entries to record all of these transactions and the uncollectible accounts expense for the period. Assume the estimated expense is 2 percent of net sales. b. Give the entry to record the estimated expense for the period if the allowance account is to be adjusted to 5 percent of outstanding receivables instead of as in.

Answer rating: 100% (QA)

a Recording the transactions and the uncollectible accounts expense using an estimated expense of 2 ... View the full answer