Suzuki Supply reports the following amounts at the end of 2015 (before adjustment). Credit Sales for 2015..................

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Suzuki Supply reports the following amounts at the end of 2015 (before adjustment).

Credit Sales for 2015.................. $260,000

Accounts Receivable, December 31, 2015............. 55,000

Allowance for Uncollectible Accounts, December 31, 2015.....1,100(credit)


Required:

1. Record the adjustment for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected.

2. Record the adjustment for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected.

3. Calculate the effect on net income (before taxes) and total assets in 2015 for each method.


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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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