Pool Corporation, Incorporated, is the world's largest wholesale distributor of swimming pool supplies and equipment. Pool Corporation reported the following information related to bad debt estimates and write-offs for a recent year. Allowance for doubtful accounts: Balance at beginning of year Bad debt expense Write-offs Balance at end of year Required: $6,882 3,188 (3,828) $6,242 1. Prepare journal entries for the bad debt expense adjustment and total write-offs of bad debts for the current year. 2. Pool Corporation reduces net sales by the amount of sales returns and allowances, cash discounts, and credit card fees. Bad debt expense is recorded as part of selling and administrative expense. Assume that gross sales revenue for the month was $140,756, bad debt expense was $216, sales discounts were $1,344, sales returns were $996, and credit card fees were $2,129. What amount would Pool Corporation report for net sales for the month?

Pool Corporation, Incorporated, is the world's largest wholesale distributor of swimming pool supplies and equipment. Pool Corporation reported the following information related to bad debt estimates and write-offs for a recent year. Allowance for doubtful accounts: Balance at beginning of year Bad debt expense Write-offs Balance at end of year Required: $6,882 3,188 (3,828) $6,242 1. Prepare journal entries for the bad debt expense adjustment and total write-offs of bad debts for the current year. 2. Pool Corporation reduces net sales by the amount of sales returns and allowances, cash discounts, and credit card fees. Bad debt expense is recorded as part of selling and administrative expense. Assume that gross sales revenue for the month was $140,756, bad debt expense was $216, sales discounts were $1,344, sales returns were $996, and credit card fees were $2,129. What amount would Pool Corporation report for net sales for the month?

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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