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Chapter 6

# Chapter 6 - E6-14 \$250,000 X 3.5 = \$8,750 \$50,000 X 10 =...

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E6-14 \$250,000 X 3.5% = \$8,750 \$50,000 X 10% = \$5,000 \$30,000 X 30% = \$9,000 Bad Debt Expense (+E, -SE) \$22,750 Allowance for doubtful accounts (+XA, -A) \$22,750 Accounts Receivable (Gross) – Allowance for Doubtful Accounts = Accounts Receivable (Net) \$330,000 – 22,750 = 307,250 P6-5 1. (1) 5,000 + 1,000 = 6,000 (2) 3,800 + 8,000 + 5,000 = 16,800 (3) 4,000 + 4,000 + 4,500 = 12,500 2. 6/30/2010 = (4,000) x 30% = 1200 1/31/2011 = (3,800) x 7% = 266 4/15/2011 = (8,000) x 7% = 560 11/30/2011 = (5,000) x 2% = 100 12/15/2011 = (1,000) x 2% = 20 4/15/2009 = (4,000) x 30% = 1200 10/15/2010 = (4,500) x 30% = 1350 3/1/2011 = (5,000) x 7% = 350 (1) \$120 (2) \$1,176 (3)\$3,750 Total = \$5,046 3. Bad Debt Expense (+E, -SE) \$5,046 Allowance for doubtful accounts (+XA, -A) \$5,046 4.

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Accounts Receivable (Gross) – Allowance for Doubtful Accounts = Accounts Receivable (Net) \$35,300 – 5,046 = 30,254 P6-6 Builders Company Inc. Income Statement For the Years Ended December 31, 2009 (dollars) Years Ended December 31 Net revenue \$133,600 Cost of Goods Sold 78,400 Gross profit 55,200 Selling Expenses 13,600 Administrative Expenses 14,400 Bad Debt Expenses 1,600 Total operating expenses 29,600 Operating Income 35,600 Income before income taxes 35,600 Income Tax Expense 7,680 Net income \$27,920 Earnings per common share: \$2.792
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Chapter 6 - E6-14 \$250,000 X 3.5 = \$8,750 \$50,000 X 10 =...

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