A trial balance before adjustment included the following: Debit Credit Accounts receivable $128,000 Allowance for doubtful accounts 670 Sales $342,000 Sales returns and allowances 8,200 Give journal entries assuming that the estimate of uncollectibles is determined by taking (Credit account titles are automatically indented when the amount is entered.) (1) 6% of gross accounts receivable (2) 1% of net sales.
A trial balance before adjustment included the following: Debit Credit Accounts receivable $128,000 Allowance for doubtful accounts 670 Sales $342,000 Sales returns and allowances 8,200 Give journal entries assuming that the estimate of uncollectibles is determined by taking (Credit account titles are automatically indented when the amount is entered.) (1) 6% of gross accounts receivable (2) 1% of net sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A trial balance before adjustment included the following:
Debit
Credit
Accounts receivable
$128,000
Allowance for doubtful accounts
670
Sales
$342,000
Sales returns and allowances
8,200
Give journal entries assuming that the estimate of uncollectibles is
determined by taking (Credit account titles are automatically indented
when the amount is entered.)
(1) 6% of gross accounts receivable
(2) 1% of net sales.
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