problem set #3 - allowance for Doubtful Account Net...

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Xiangying Wu Problem Set #3 for Intro to Financial Accounting Problem 1: (a) 2/5/98 Account Receivable $20,000 Sales $20,000 2/10/98 Sales returns & allowances $650 Account Receivable $650 2/14/98 Cash $18,963 Sales Discount $387 Account Receivable $19,350 2/16/98 Cash $7,500 Account Receivable $7,500 Sales $15,000 2/27/98 Cash $7,500 Account Receivable $7,500 (b) Net sales= total sales – sales discounts- sales returns and allowance Net sales= 20,000+ 15,000- 650- 387= 33,963 Problem 2 A. Net realizable value of account receivable= Gross Account Receivable-
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Unformatted text preview: allowance for Doubtful Account Net realizable value of account receivable= 57,000- 2,000= 55,000 B. January 2 Allowance for Doubtful Accounts $300 Account Receivable $300 C. Net realizable value of account receivable=55,000-300=54,700 Problem 3 A. Bad Debt Expense $1,750 Allowance for Doubtful Account $1,750 B. Bad Debt Expense $2,000 Allowance for Doubtful Account $2,000 C. Bad Debt Expense $2,150 Allowance for Doubtful Account $2,150 D. Current Assets: OS Gross Profit: OS...
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