(iii) The Accounts Receivable presented in the Angel Company's Statement of Financial Position at 12/31/201X would be: (b) (i) If Angel Company uses income statement approach to estimating the uncollectible accounts, and the estimated uncollectible is to be 1% of net credit sales, what is the amount of the Impairment Loss of Receivable for the year? (Round to integer) (ii) Show the adjusting entry at year-end to record the Impairment Loss of Receivable for the year. Debit Credit (iii) The Accounts Receivable presented in the Angel Company's Statement of Financial Position at 12/31/201X would be:

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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(iii) The Accounts Receivable presented in the Angel Company's Statement of
Financial Position at 12/31/201X would be:
(b) (i) If Angel Company uses income statement approach to estimating the
uncollectible accounts, and the estimated uncollectible is to be 1% of net credit
sales, what is the amount of the Impairment Loss of Receivable for the year?
(Round to integer).
(ii) Show the adjusting entry at year-end to record the Impairment Loss of
Receivable for the year.
Debit
Credit
$
(iii) The Accounts Receivable presented in the Angel Company's Statement of
Financial Position at 12/31/201X would be:
Transcribed Image Text:(iii) The Accounts Receivable presented in the Angel Company's Statement of Financial Position at 12/31/201X would be: (b) (i) If Angel Company uses income statement approach to estimating the uncollectible accounts, and the estimated uncollectible is to be 1% of net credit sales, what is the amount of the Impairment Loss of Receivable for the year? (Round to integer). (ii) Show the adjusting entry at year-end to record the Impairment Loss of Receivable for the year. Debit Credit $ (iii) The Accounts Receivable presented in the Angel Company's Statement of Financial Position at 12/31/201X would be:
Part B
Question 1
At the end of the year, 31 December 201X, the unadjusted trial balance of Angel
Company included the following accounts:
Debit
Credit
Sales (80% represent credit sales)
$780,575
Accounts Receivable
$101,475
Allowance for Impairment
$1,218
(a) (i) If Angel Company uses the Statement of Financial Position Approach to
estimate uncollectible accounts, and aging the accounts receivable indicates
the estimated uncollectible portion to be $6,075, what will the Impairment
Loss of Receivable for the year be?
(ii)Show the adjusting entry at year-end to record the Impairment Loss of
Receivable for the year.
Debit
Credit
$
Transcribed Image Text:Part B Question 1 At the end of the year, 31 December 201X, the unadjusted trial balance of Angel Company included the following accounts: Debit Credit Sales (80% represent credit sales) $780,575 Accounts Receivable $101,475 Allowance for Impairment $1,218 (a) (i) If Angel Company uses the Statement of Financial Position Approach to estimate uncollectible accounts, and aging the accounts receivable indicates the estimated uncollectible portion to be $6,075, what will the Impairment Loss of Receivable for the year be? (ii)Show the adjusting entry at year-end to record the Impairment Loss of Receivable for the year. Debit Credit $
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