Sam's TVs shows the following AR Aging: Best Buy Walmart Target Total Total Not Due Yet 10,000 9,500 6,500 5,200 3,500 1,600 20,000 16,300 1-30 Days Past Due 500 500 31-60 Days Past Due 600 600 61-90 Days Past Due 1,000 1,000 Over 90 Days Past Due 700 900 1,600 Based on past experiences, Sam's TVs estimates the percentages probably uncollectible as follows: Not Due Yet, 1 percent; 1-30 Days Past Due, 2% ; 31-60 Days Past Due, 5% ; 61-90 Days Past Due, 10%; and Over 90 Days Past Due, 20% . Using the Balance Sheet Approach, estimate the amount of uncollectible accounts Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to the proper amount, assuming it had a credit balance of $235 before the above estimation Assuming the above shows all of Sam's TVs credit sales and management estimates that 2% of credit sales are deemed uncollectible, use the Income Statement approach to find the amount of uncollectible account expense

Sam's TVs shows the following AR Aging: Best Buy Walmart Target Total Total Not Due Yet 10,000 9,500 6,500 5,200 3,500 1,600 20,000 16,300 1-30 Days Past Due 500 500 31-60 Days Past Due 600 600 61-90 Days Past Due 1,000 1,000 Over 90 Days Past Due 700 900 1,600 Based on past experiences, Sam's TVs estimates the percentages probably uncollectible as follows: Not Due Yet, 1 percent; 1-30 Days Past Due, 2% ; 31-60 Days Past Due, 5% ; 61-90 Days Past Due, 10%; and Over 90 Days Past Due, 20% . Using the Balance Sheet Approach, estimate the amount of uncollectible accounts Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to the proper amount, assuming it had a credit balance of $235 before the above estimation Assuming the above shows all of Sam's TVs credit sales and management estimates that 2% of credit sales are deemed uncollectible, use the Income Statement approach to find the amount of uncollectible account expense

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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