Chapter 6 Practice Problem with Solutions

Chapter 6 Practice - Chapter 6 Practice Problem On December 1st Tahoe Thunder Inc.s accounts receivable has a balance of $260,000 The net

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Accounts Receivable 1 - 30 days 31-60 days 61-90 days > 90 days $230,000 $160,000 $35,000 $14,000 $21,000 % uncollectible estimate 0.2% 1.0% 5.0% 30.0% Chapter 6 Practice Problem On December 1 st , Tahoe Thunder Inc.’s accounts receivable has a balance of $260,000. The net realizable value was $251,900. Tahoe Thunder uses the aging method to estimate bad debt. On December 15 th , Tahoe Thunder wrote off a $1,500 and a $400 receivable from a customer that just filed bankruptcy. At the end of December, Tahoe Thunder aged their receivables and the results are below. Tahoe Thunder had $400,000 of credit sales (they only sell on credit) during the period and historically 2% of credit sales have been uncollectible. Required Using the aging method Book a journal entry to write-off the customer’s receivables. Allowance for Doubtful Accounts $1,900 Accounts Receivable $1,900 Book a journal entry to record bad debt expense for the month of December. Bad Debt Expense
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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Chapter 6 Practice - Chapter 6 Practice Problem On December 1st Tahoe Thunder Inc.s accounts receivable has a balance of $260,000 The net

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