ACCT Dec 4

ACCT Dec 4 - and this is not supposed to mathematically...

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ACCT Professor Williams Chapter 7 Homework Page 316 PB7-1 A. 30,141 x .005 150.71 Dr Bad Debt Expense (E+ SE-) 150.71 Cr Allowance for Doubtful Accounts(A-) 150.71 To record bad debt expense B. Dr Bad Debts Expense (E+ SE-) 175 Cr Allowance for Doubtful Accounts (A-) 175 To record bad debt expense C. Dr Bad Debt Expense (E+ SE-) 25 Cr Allowance for Doubtful Accounts(A-) 25 To record bad debt expense D. Dr Allowance for Doubtful Accounts (+A) 15 Cr Accounts Receivable (A-) 15 To record uncollectible receivables Page 319 1.2110 2. Dr Bad Debt Expense 2110 Cr Allowance for Doubtful Accounts 2110 To record bad debt expense 3. Net income will reduce to $13,110 4. The controllers way of using the again method is not logical to estimate bad debts since he is just throwing a number out there that he would like his company to receive,
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Unformatted text preview: and this is not supposed to mathematically transfer to the allowance for doubtful accounts. 5. 5125 = bad debt expense 77400-56560- 5125 15715- 5620 10095 = Net income With this bad debt expense the trend of an increase in Net income will no longer exist. 6. It is unethical for the controller to say that he would like to see 8,000 in doubtful accounts just so he does not look bad. It is also unethical for me to adjust entries to receive that 8,000 doubtful accounts marker that my controller had suggested, since the only way to receive doubtful accounts of 8,000 is through correct mathematical calculation with no false adjustments....
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This note was uploaded on 04/07/2008 for the course ACCT 200 taught by Professor Williams during the Fall '07 term at Marist.

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ACCT Dec 4 - and this is not supposed to mathematically...

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