Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account balance for Accounts Receivable (prior to any adjustments) is $ 9,500,000 The year ending 12/31/20 account balance for All owance for Doubtful Accounts (prior to any adjustments) is $ 350,000 The C.F.O. (Chief Finandal Officer) has informed the accounting department that the ye ar ending 12/31/20 All owance for Doubtful Accounts balance should be 2.5% of annual sales. Required: 1 Prepare the ne ce ssary year-end adjusting journal entry necessary to reflect the balance expected by the C.F.O. 2 Calculate the Net Accounts Receivable balance (after adjustment).

Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account balance for Accounts Receivable (prior to any adjustments) is $ 9,500,000 The year ending 12/31/20 account balance for All owance for Doubtful Accounts (prior to any adjustments) is $ 350,000 The C.F.O. (Chief Finandal Officer) has informed the accounting department that the ye ar ending 12/31/20 All owance for Doubtful Accounts balance should be 2.5% of annual sales. Required: 1 Prepare the ne ce ssary year-end adjusting journal entry necessary to reflect the balance expected by the C.F.O. 2 Calculate the Net Accounts Receivable balance (after adjustment).

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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Please answer the 2 following questions:
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