Required 1. Prepare the adjusting entry for Ingleton Co. to recognize bad debts under each of the following inde- pendent assumptions. a. Bad debts are estimated to be 2.5% of credit sales. b. Bad debts are estimated to be 1.5% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part la. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part lc.
Required 1. Prepare the adjusting entry for Ingleton Co. to recognize bad debts under each of the following inde- pendent assumptions. a. Bad debts are estimated to be 2.5% of credit sales. b. Bad debts are estimated to be 1.5% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part la. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part lc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q3: At December 31, 2015, Ingleton Company reports the following results for the year:
Cash sales
$1,025,000
Credit sales
1,342,000
In addition, its unadjusted trial balance includes the following items:
Accounts receivable
$575,000 debit
Allowance for doubtful accounts
7,500 credit
.....
Required
1. Prepare the adjusting entry for Ingleton Co. to recognize bad debts under each of the following inde-
pendent assumptions.
a. Bad debts are estimated to be 2.5% of credit sales.
b. Bad debts are estimated to be 1.5% of total sales.
c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31,
2015, balance sheet given the facts in part la.
3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31,
2015, balance sheet given the facts in part le.
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