Solution-How much higher lower would casebolt companys 2014

How much higher lower would casebolt companys 2014 net

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Reference no: EM13978275

Entries for bad debt expense under the direct write-off and allowance methods

Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2014:

Customer	Amount
Shawn Brooke	4650
Eve Denton	5180
Art Malloy	11050
Cassie Yost	9120
Total	30000

a. Journalize the write-offs for 2014 under the direct write-off method.

b. Journalize the write-offs for 2014 under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during 2014. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible.

c. How much higher (lower) would Casebolt Company's 2014 net income have been under the direct write-off method than under the allowance method?

Reference no: EM13978275

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How much higher lower would casebolt companys 2014 net

Reference no: EM13978275

Reference no: EM13978275

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