FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A company reports the following amounts at the end of 2024 (before adjustment).
Credit Sales for 2024
Accounts Receivable, December 31, 2024
Allowance for Uncollectible Accounts, December 31, 2024
Required:
1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of
receivables will not be collected.
2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 1% of
credit sales will not be collected.
3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of
receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
Journal entry worksheet
<
1
Record the adjusting entry for uncollectible accounts.
Note: Enter debits before credits.
Date
December 31, 2024
$240,000
35,000
1,200 (debit)
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
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Transcribed Image Text:A company reports the following amounts at the end of 2024 (before adjustment). Credit Sales for 2024 Accounts Receivable, December 31, 2024 Allowance for Uncollectible Accounts, December 31, 2024 Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 1% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the adjusting entry for uncollectible accounts. Note: Enter debits before credits. Date December 31, 2024 $240,000 35,000 1,200 (debit) Record entry General Journal Clear entry Debit Credit View general journal >
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