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Unformatted text preview: How should her summary entries appear? (b) After completing her review, Myssie concluded that beginning in 20X8, the company would switch to a balance sheet approach for providing for uncollectible accounts. She estimates that the Allowance for Uncollectible Accounts should include an end-of-year balance equal to 3% of total gross receivables. Prepare summary journal entries for 20X8 to capture the following information, and to update the allowance account from its beginning of year balance (see part (a) to determine the beginning balance). Sales on account 6,600,000 Collections on account 5,900,000 Sales Discounts 88,000 Accounts written-off 53,000 (c) What is the objective in deciding which technique is appropriate for estimating uncollectibles? What factors perhaps influenced Myssie's decision to adopt a new technique?...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11