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Question - Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).
Credit Sales for 2021 $246,000
Accounts Receivable, December 31, 2021 41,000
Allowance for Uncollectible Accounts, December 31, 2021 1,200 (Credit)
Calculate the effect on net income (before taxes) and total assets in 2021 for each method. Suzuki estimates 11% of receivables and 3% of credit sales respectively will not be collected.
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