29 Jun Question Allowance method: Income statement and balance sheet approaches.Tempe
Question
Allowance method: Income statement and balance sheet
approaches.Tempe
Company reported accounts receivable of $300,000 and an allowance for
uncollectible accounts of $31,000 (credit) on the December 31, 19X2, balance
sheet. The following data pertain to 19X3 activities and operations:
Sales
on account
$2,000,000
Cash
collections from credit customers
1,600,000
Sales
discounts
50,000
Sales
returns & allowances
100,000
Uncollectible
accounts written off
29,000
Collections
on accounts that were previously written off
2,700
Instructions
Prepare journal entries to
record the sales- and receivables-related transactions from 19X3.
Prepare the December 31,
19X3, adjusting entry for uncollectible accounts assuming that uncollectibles
are estimated to be 2% of net credit sales.
Prepare the December 31,
19X3, adjusting entry for uncollectible accounts assuming that uncollectibles
are estimated at 1% of year-end accounts receivable.
Compute the amount of the
adjusting entry in part (c) assuming that $46,000, rather than $29,000, of
accounts were written off in 19X3.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.