Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2014,
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a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows:
b. During 2015, credit sales were $1,200,000; sales discounts taken were $22,000; accounts receivable collected were $995,000; and accounts written off during the year totaled $24,000. Prepare the adjusting entry required on December 31, 2015, to estimate uncollectible receivables assuming it is based on the following aging analysis.
c. Show how accounts receivable would appear on the December 31, 2015, balance sheet.
Analysis Component: Comment on the advantages and disadvantages of using an aging analysis for estimating uncollectible accounts.
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen
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