The following information pertains to leslies floor store

Assignment Help Accounting Basics

Reference no: EM13454389

Determining account balances: percent of revenue allowance method of accounting for uncollectible accounts

The following information pertains to Leslie's Floor Store sales on account and accounts receivable.

Accounts receivable balance, January 1, 2012 Allowance for doubtful accounts, January 1, 2012 Sales on

account, 2012 Cost of goods sold, 2012

Collections of accounts receivable, 2012

$ 52,500 4,725 925,000 615,000 835,000

(ACC 201 200)

After several collection attempts, Leslie's wrote off $3,100 of accounts that could not be collected. Leslie's estimates that bad debts expense will be 0.5 percent of sales on account.

Required

a. Compute the following amounts. (1) Using the allowance method, the amount of uncollectible accounts expense for 2012. (2) Net realizable value of receivables at the end of 2012.

b. Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.

Reference no: EM13454389

Questions Cloud

Explain how the distribution of income among different : discuss how the distribution of income among various groups of income earners have changed in this country during the

Explain the overall process of the cardiovascular system of : the circulatory system of an amphibian is divided into two separate loops. the pulmonary circulation carries

During the first year of operation 2012 martins appliance : determination of account balances-percent of receivables allowance method of accounting for uncollectible

Write a short description of fiscal policy of the united : during recent political campaigns taxes and budget policy were key issues. white house budget packages are often

The following information pertains to leslies floor store : determining account balances percent of revenue allowance method of accounting for uncollectible accountsthe following

Two piezometers have been placed along the direction of low : two piezometers have been placed along the direction of low in a confined aquifer that is 30.0 m thick. the

Estimate the revised balance of factory overhead account : thai bays computer system generated the following trial balance on december 31 2011. the companys manager knows

A student was comparing preserved specimens of three plant : a student was comparing preserved specimens of three plant species x y and z in a classroom . which statement is an

Draw a food-web for your meal in order to do this you will : you hit subway for lunch between classes. you order a ham sandwich on wheat bread with cheese lettuce and tomato and a

User Account

All Pages