EXERCISE 1 The Sweet Dreams Inc starts business selling bed mattresses, pillows and other related products, on January 1, 2019. At December 31, 2019, the total account receivable of the company is $350,000; out of which, management estimates that receivables amounting to $4,500 will turn out to be uncollectible. At February 12, 2020, Sandman Ltd who is a receivable of $1,200, becomes bankrupt and no amount can be recovered from them. At December 31, 2020, the accounts receivable shows a balance of $475,000. On this date, the company revises the estimates of its credit losses and determines that receivables amounting to $4,800 will become uncollectible receivables. Required: a. 31, 2019. b. Prepare an adjusting entry to recognize uncollectible accounts expense at December C. Prepare an entry to write off accounts receivable at February 12, 2020. Prepare an adjusting entry to recognize uncollectible accounts expense at December 31 2020

EXERCISE 1 The Sweet Dreams Inc starts business selling bed mattresses, pillows and other related products, on January 1, 2019. At December 31, 2019, the total account receivable of the company is $350,000; out of which, management estimates that receivables amounting to $4,500 will turn out to be uncollectible. At February 12, 2020, Sandman Ltd who is a receivable of $1,200, becomes bankrupt and no amount can be recovered from them. At December 31, 2020, the accounts receivable shows a balance of $475,000. On this date, the company revises the estimates of its credit losses and determines that receivables amounting to $4,800 will become uncollectible receivables. Required: a. 31, 2019. b. Prepare an adjusting entry to recognize uncollectible accounts expense at December C. Prepare an entry to write off accounts receivable at February 12, 2020. Prepare an adjusting entry to recognize uncollectible accounts expense at December 31 2020

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Description: EXERCISE 1The Sweet Dreams Inc starts business selling bed mattresses, pillows and other relatedproducts, on January 1, 2019. At December 31, 2019, the total account receivable of thecompany is $350,000; out of which, management estimates that recei

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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