Kendo Company has a December 31 year-end. The following information relates to the year just ended: Sales for the year $38,000 (of which 20% were cash sales) Accounts Receivable January 1 were $15,000 and increased 50% by December 31 Allowance for Doubtful Accounts January 1 $4,684 Kendo sets its provision for uncollectible accounts receivable at 2% of credit sales. Required 1: Assuming no other transaction happened, what is the Uncollectible Accounts Expense reported on Decmber 31st? $ Required 2: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ Required 3: Assuming no other transaction happened, what is the adjusted balance of Allowance for Doubtful Accounts at December 31st? $

Kendo Company has a December 31 year-end. The following information relates to the year just ended: Sales for the year $38,000 (of which 20% were cash sales) Accounts Receivable January 1 were $15,000 and increased 50% by December 31 Allowance for Doubtful Accounts January 1 $4,684 Kendo sets its provision for uncollectible accounts receivable at 2% of credit sales. Required 1: Assuming no other transaction happened, what is the Uncollectible Accounts Expense reported on Decmber 31st? $ Required 2: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ Required 3: Assuming no other transaction happened, what is the adjusted balance of Allowance for Doubtful Accounts at December 31st? $

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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At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 320,000 Credit sales $ 800,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 432,000 debit Allowance for doubtful accounts $ 4,300 debit 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
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