Each company uses the percentage of net sales method to

Reference no: EM13567773

Part 1:William's card shop is planning to expand. Before it expands, the owner wants to review the uncollectible accounts. William asks you to calculate the percentage of uncollectible accounts per year.

Year	Net Sales	Uncollectible Accounts
Year 1	$ 23,000	$ 800
Year 2	28,750	1,200
Year 3	46,000	1,345
Year 4	52,000	1,150

Instruction:
Calculate the percentage of uncollectible accounts per year.
Part 2:
Below are the end-of-period account balances for several stationery and office supply companies:

Name of the Companies	Sales	Sales Discount	Sales Returns and allowances	Percentage of Net Sales Uncollectible
Andrews Co	$142,360	$1,423	$936	2
The Book Nook	$209,100	$3,180	$1,139	1
Cable Inc	$173,270	$1,730	$1,540	1 ½
Davis Inc	$65,460	$650	$690	2
Ever - Sharp Co	$95,085	$900	$1,035	1 ¼

Each company uses the percentage of net sales method to estimate its uncollectible accounts expense. The parentage used by each company is also listed.
Instructions:

Calculate the amount of the adjustment for uncollectible accounts expense using the percentage of net sales method.
Record the adjusting entry for the estimated uncollectible accounts expense for Davis Inc.

Reference no: EM13567773

Questions Cloud

Negus enterprises has an inventory conversion period of 50 : negus enterprises has an inventory conversion period of 50 days an average collection period of 35 days and payables

A bond trader purchased each of the following bonds at a : a bond trader purchased each of the following bonds at a yield to maturity of 8. immediately after she purchased the

Two wheels operates on a fiscal year beginning january 1 at : part 1 the following table uses the four inventory costing method and displays the cost of ending inventory for click

Meyer co follows the practice of recording prepaid expenses : meyer co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. the

Each company uses the percentage of net sales method to : part 1williams card shop is planning to expand. before it expands the owner wants to review the uncollectible accounts.

An analyst is examining an income statement that shows only : an analyst is examining an income statement that shows only percentages all items are expressed in terms of a

Discuss the contrasting literary styles used in william : discuss the contrasting literary styles used in william faulkners a rose for emily and katherine ann porters the

Last year she earned 45000 as a sales assistant for focused : mary watson is 24 years old and single lives in an apartment and has no dependents. last year she earned 45000 as a

An investor bought a one-acre lot on the outskirts of a : an investor bought a one-acre lot on the outskirts of a city for 9000 cash. each year she paid 80 of property taxes .

User Account

All Pages