During the first year of operations, family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000 If the company were to use the allowance method with uncollectible estimate of 1% of sales: Determine what the net income would have been under the allowance method

During the first year of operations, family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000 If the company were to use the allowance method with uncollectible estimate of 1% of sales: Determine what the net income would have been under the allowance method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the first year of operations, Family Ventures, a Boston-based construction company, had sales of $4,350,000, wrote off $35,700 of accounts as uncollectible using direct write-off method, and reported net income of $521,000. Required: If the company were to use the allowance method with uncollectible estimate of 1% of sales: Determine what the net income would have been under the allowance method
During the first yea of operation family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000. If the company were to use the allowance method with uncollectible estimate of 1% of saes; Determine what the net income would have been under the allowance method
During the first year of operations, Ken's Data Ventures, a Dedham-based construction company, had sales of $4,350,0003; it wrote $35,700 of accounts as uncollectible using direct write-off method, and reported net income of $521,000. Required: If the company were to use the allowance method with uncollectible estimate of 19% of sales, determine what the net income would have been under the allowance method. Show Your Work:
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