North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December31.Account Titles,CashAccounts ReceivablePrepaid RentEquipmentAccumulated DepreciationAccounts PayableIncome Tax PayableDebit$ 11,100Credit5,1002,22820,100$1,1981,198Retained EarningsSales RevenueSalaries and Wages Expense0Utilities Expense24.10011,600BRent ExpenseDepreciation ExpenseIncome Tax ExpenseTotalsOther data not yet recorded at December 31:a. Rent expired during the year, $1,110.b. Depreciation expense for the year, $1,190.c. Utilities used, unrecorded, and unpaid $8,100.d. Income tax expense, $300.1,28046,740$ 74,228$ 74,220

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Answered: North Star prepared the following…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 5PA: Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in...

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A year end review of Accounts Receivable and estimated uncollectible percentages revealed the following: attached in ss below thankas gwroiwrnio
A recent annual report for RVC contained the following information (dollars in thousands) at the end of its fiscal year: Year 2 Year 1 Accounts receivable $ 9,077,000 $ 8,620,000 Allowance for doubtful accounts (1,020,000 ) (552,000 ) $ 8,057,000 $ 8,068,000 A footnote to the financial statements disclosed that uncollectible accounts amounting to $816,000 and $426,000 were written off as bad debts during year 2 and year 1, respectively. Assume that the tax rate for RVC was 35 percent. Required: 1. Determine the bad debt expense for year 2 based on the preceding facts.(Hint: Use the Allowance for Doubtful Accounts T-account to solve for the missing value.) (Enter your answers in thousands not in dollars.) 2. Working capital is defined as current assets minus current liabilities. Would the working capital be affected by the write-off of an uncollectible account? 3. Would the net income be affected by the $816,000 write-off during year…
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