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Unformatted text preview: E7-11 Receivables-Bad Debts(AICPA Adapted) At January 1, 2010, the credit balance in the Allowance forDoubtful Accounts of the Master Company was $400,000. For 2010, the provision for doubtful accountsis based on a percentage of net sales. Net sales for 2010 were $50,000,000. Based on the latest available facts,the 2010 provision for doubtful accounts is estimated to be 0.7% of net sales. During 2010, uncollectiblereceivables amounting to $410,000 were written off against the allowance for doubtful accounts.RequiredPrepare a schedule computing the balance in Master’s Allowance for Doubtful Accounts atDecember 31, 2010. Show supporting computations in good form.E7-11 Receivables-Bad DebtsName:Pamela BatesAn asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still gettinga red asterisk, and think the answer is correct, but used a formula in the cell try manually typingin the answer according to the rounding instructions....
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- Spring '10
- Computer Science, Doubtful Accounts, Master company