epare recognize bad debts under each of the owing independent assumptions. Bad debts are estimated to be 3% of credit es. Bad debts are estimated to be 2% of total es. n aging analysis estimates that 6% of vear-

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Prepare the adjusting entry for this company
to recognize bad debts under each of the
following independent assumptions.
a. Bad debts are estimated to be 3% of credit
sales.
b. Bad debts are estimated to be 2% of total
sales.
c. An aging analysis estimates that 6% of year-
end accounts receivable are uncollectible.
2.
Show how Accounts Receivable and the Allowance for Doubtful Accounts
appear on its December 31, 2013, balance sheet given the facts in part la.
Adjusting entries (all dated December 31, 2013).
Transcribed Image Text:1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year- end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part la. Adjusting entries (all dated December 31, 2013).
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