FA08Quiz6-key - Financial Accounting Spring, 2008 Quiz 6...

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Quiz 6 Name: Spring, 2008 1. Credit Sales Co uses the credit sales method to account for bad debts. They had a balance in its Allowance for Uncollectible Accounts of $2 (CR) as of January 1, 2008. During 2008, they had credit sales of $100 and estimated bad debt expense to be 3% of credit sales. The December 31, 2008 balance in Accounts Receivable is $20. During the year, they wrote off $4 in specific customer accounts. Provide the journal to record bad debt expense for the year. 2. End Co uses the ending gross accounts receivable method to account for bad debts. They had a balance in its Allowance for Uncollectible Accounts of $2 (CR) as of January 1, 2008. During 2008, they had credit sales of $100. The December 31, 2008 balance in Accounts Receivable is $20. They estimate that 15% of the $20 will ultimately be uncollectible. During the year, they wrote off $4 in specific customer accounts. Provide the journal to record bad debt expense for the year. There are 2 more questions on the back of this page.
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Unknown during the Spring '08 term at Carnegie Mellon.

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FA08Quiz6-key - Financial Accounting Spring, 2008 Quiz 6...

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