Using the data in Exercise 8-13, assume that during the second year of operations O'Hara Automotive Supply
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a. Determine what net income would have been in the second year if the allowance method (using 21/2% of net sales) had been used in both the first and second years.
b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years.
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Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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