Net credit sales $831, 400 Account Receivable 222,850 Allowance for Doubtful Account 0. Do the following: Compute bad debt estimation using the income method, where the percentage uncollectible is 5%. Prepare the journal entry for the income statement method bad debt estimation. Compute bad debt estimation using the balance sheet method of percentage of receivables, where the percentage uncollectible is 9%. Prepare the journal entry for the balance sheet method bad debt estimation.
Net credit sales $831, 400 Account Receivable 222,850 Allowance for Doubtful Account 0. Do the following: Compute bad debt estimation using the income method, where the percentage uncollectible is 5%. Prepare the journal entry for the income statement method bad debt estimation. Compute bad debt estimation using the balance sheet method of percentage of receivables, where the percentage uncollectible is 9%. Prepare the journal entry for the balance sheet method bad debt estimation.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....
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Net credit sales $831, 400
Account Receivable 222,850
Allowance for Doubtful Account 0.
Do the following:
Compute bad debt estimation using the income method, where the percentage uncollectible is 5%.
Prepare the journal entry for the income statement method bad debt estimation.
Compute bad debt estimation using the balance sheet method of percentage of receivables, where the percentage uncollectible is 9%.
Prepare the journal entry for the balance sheet method bad debt estimation.
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