Discuss the percentage-of receivables method

Reference no: EM131520844

Question: Suzuki Supply reports the following amounts at the end of 2012 (before adjustment)

Required: 1. Record the adjustment for uncollectible accounts using the percentage-ofreceivables method. Suzuki estimates 10% of receivables will not be collected.

2. Record the adjustment for uncollectible accounts using the percentage-of-creditsales method. Suzuki estimates 2% of credit sales will not be collected.

3. Calculate the effect on net income (before taxes) and total assets in 2012 for each method.

Reference no: EM131520844

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