The 123110 balance sheet of sock company had accounts

Reference no: EM13599570

The 12/31/10 balance sheet of Sock Company had Accounts Receivable of $ 500.000 and a credit balance in Allowance for Uncollectable Accounts of $ 33.000. During 2011, the following transactions ocurred: Sales on account $ 1.200.000; Sales allowances $ 50.000: Collections from customers $ 1.165.000; Accounts written off $ 35.000; Previously written off accounts of $ 5.000 were collected.

REQUIRED;

A. Jouralize the2011 transactions.

B. If the company uses the % of Sales basis to estimate bad debt expense and anicipates 2% of net sales to be uncollectable, prepare the AJE for 12/31/11.

C.If the compant uses the % of receivables basis to estimate bad debt expense and determines that uncollectable accounts are expected to be 4% of accounts receivable, prepare the AJE for 12/31/11.

D. Independent of the above facts, briefly explain how accounting for bad debts can be used for eaenings statement.

Reference no: EM13599570

Questions Cloud

A company is preparing completing their cash budget the : a company is preparing completing their cash budget. the following data has been prepared for cash receipts and

Miller engine research is expanding its research and : miller engine research is expanding its research and production capacity to introduce a new line of fuel technology for

As of january 1 of the current year the grackle company had : as of january 1 of the current year the grackle company had accounts receivables of 50000. the sales for january

Clear water is considering introducing a water filtration : clear water is considering introducing a water filtration device for its 20-ounce water bottles. market research

The 123110 balance sheet of sock company had accounts : the 123110 balance sheet of sock company had accounts receivable of 500.000 and a credit balance in allowance for

The budget for may called for production of 9000 units : the budget for may called for production of 9000 units. actual output for the month was 8500 units with total direct

At the beginning of april the cash balance is 21420 : venetian company management wants to maintain a minimum monthly cash balance of 20590. at the beginning of april the

Steckelburg inc produces and sells a single product the : steckelburg inc. produces and sells a single product. the selling price of the product is 150.00 per unit and its

Gorgeous georgie pty ltd georgie is a private company with : gorgeous georgie pty ltd georgie is a private company with many strategic investments. the finance director is

User Account

All Pages