PROBLEM_7-2

# PROBLEM_7-2 - Accounts Allowance for doubtful accounts...

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PROBLEM 7-2 1. Net sales Percentage Bad debt expense 2. Accounts receivable Amounts estimated to be uncollectible Net realizable value 3. Allowance for doubtful accounts 1/1/07 Establishment of accounts written off in prior years Customer accounts written off in 2007 Bad debt expense for 2007 (\$2,100,000 X 3%) Allowance for doubtful accounts 12/31/07 4. Bad debt expense for 2007 Customer accounts written off as uncollectible during 2006 Allowance for doubtful accounts balance 12/31/07 Accounts receivable, net of allowance for doubtful

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Unformatted text preview: Accounts Allowance for doubtful accounts balance 12/31/07 Accounts receivable, before deducting allowance for doubtful accounts 5. Accounts receivable Percentage Bad debt expense, before adjustment Allowance for doubtful accounts (debit balance) Bad debt expense, as adjusted 7-41 \$1,500,000 1 1/2 % \$ 22,500 \$1,750,000 (180,000) \$1,570,000 \$17,000 8,000 (30,000) 63,000 \$58,000 \$ 84,000 (24,000) \$ 60,000 \$ 950,000 60,000 \$1,010,000 \$410,000 3 % 12,300 14,000 \$ 26,300...
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## This note was uploaded on 06/18/2008 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

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PROBLEM_7-2 - Accounts Allowance for doubtful accounts...

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