Financial Accounting Questions

Financial Accounting Questions - 1. Everest Company uses...

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1. Everest Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions. Disregard any impact on merchandise inventory, and omit explanations. January 5 Sold merchandise on account to Mary Benes for $1,000. April 15 Received $200 from Mary Benes on account. August 21 Wrote off as uncollectible the balance of the Mary Benes account when she declared bankruptcy. October 5 Unexpectedly received a check for $250 from Mary Benes. Date Description Debit Credit - 1 -
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2. Better Products is undecided about which base to use in estimating uncollectible accounts. On December 31, 2009, the balance in Accounts Receivable was $680,000. Net credit sales during 2009 amounted to $3,900,000. An analysis of the accounts receivable aging under the percentage of receivables method indicated that $38,000 in accounts receivable is expected to be uncollectible. Past experience has shown that about 1% of net credit sales eventually are uncollectible. Prepare the adjusting entries to record estimated bad debts expense using the:
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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Financial Accounting Questions - 1. Everest Company uses...

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