Bus230AMini7Sp08

Bus230AMini7Sp08 - Sonoma State University Bus 230A Spring...

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Sonoma State University Bus 230A Spring 2008 - Minitest 7 Mark LeVine 1. Hultberg Hatcheries uses the percentage of sales method for computing the Allowance for Uncollectible Accounts. During 2006, Hemmer had $2,375,500 in credit sales. Assuming that approximately 4% of Hultberg’s credit sales are never collected, what journal entry will Hultberg need to recognize Bad Debt Expense for the year? a. Bad Debt Expense $95,020 Allow. For Uncollectible Accounts $95,020 b. Allowance for Uncollectible Accounts $118,775 Bad Debt Expense $118,775 c. Bad Debt Expense $118,750 Accounts Receivable $118,750 d. Allow. For Uncollectible Accounts $95,020 Bad Debt Expense $95,020 2. Wall Wallets, Inc. maintains an Allowance for Uncollectible Accounts. On November 1, 2006, one of its customers goes out of business, and Wall Wallets, Inc. decides to write off an account receivable from that customer in the amount of $1,275. What will that entry for the write-off look like? a.
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Bus230AMini7Sp08 - Sonoma State University Bus 230A Spring...

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