Determine what the net income No. 66During its first year of operations, Peter's Plumbing SupplyCo. had sales of $370,000, wrote off $5,900 of accounts asuncollectible using the direct write-off method, andreported net income of $40,700.Determine what the net income would have been if theallowance method had been used, and the companyestimated that 1.75% of sales would be uncollectible.

xplanation of SalesSales represent the total revenue generated by a company through selling its…

Answered: No. 66 During its first year of…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 1CP: Martel Co. has 320,000 in Accounts Receivable on December 31, 20-1, the end of its first year of...

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Martel Co. has 320,000 in Accounts Receivable on December 31, 20-1, the end of its first year of operations. The business is new, so it has no prior experience with uncollectible accounts. In Martels overall industry, the percentage of uncollectible accounts receivable is about 3%. For companies similar to Martel in size and operations, the percentage is about 5%. Martel decides to use the overall industry experience as the basis for its estimate of uncollectible accounts. Prepare the adjusting entry on December 31, 20-1 for Martel Co.s uncollectible accounts.
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Futing its first of operations, Mack's plumbing supply co. Haf sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct write-off method, and reported net income of $67,100. Determine what the net income would have been if the allowance method had been used, and the company estimated 1 3/4% of sales would be uncollectible .
During its first year of operations, Mack’s Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncollectible using the direct write-off method, and reported net income of $712,500. Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $7,450,000, wrote off $52,000 of accounts as uncollectible using the direct write-off method, and reported net income of $800,000. a. Determine what net income would have been in the second year if the allowance method (using 1% of sales) had been used in both the first and second years.$fill in the blank 1 b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years.$fill in the blank 2
5. During its first year of operations, Sampson's Cosmetics International had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and re-ported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
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A company had net sales of $29, 800and accounts receivable of S4, 400for the current period. Its days' sales uncollected equals: (Use 365 days a year.)O A) 65.09 days.O B) 45.89 days.. C) 69.19 days.O D) 53.89 days.O E) 6.77 days.28A company had net sales of $29,800and accounts receivable of $4,400 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)O A) 65.09 days.O B) 45.89 days.. C) 69.19 days.O D) 53.89 days.O E) 6.77 days.28

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