assignment 3 solution

assignment 3 solution - ACCT 100 Assignment 3 Solution...

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ACCT 100 Assignment 3 Solution Customer’s name Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due N Julian 1240 O Juarez 440 J Upchurch 1320 J Earnheardt 820 J Durham 200 R Rasco 2400 H Kinnan 980 J Davis 1680 D Clayton 1120 J Cleland 500 R hennesy 900 R henry 700 H Perry 180 T Barnard 1460 R Connell 560 B. Humprhries 340 T.Fay 400 Total 7400 3300 1780 2020 740 Percent uncollectible 1% 4% 10% 50% 75% Estimated uncollectible 74 132 178 1010 555 Total Uncollectible = 74+132+178+1010+555= 1949 2 . Bad debt expense Dr 1219 Allowance for doubtful accounts Cr 1219 3. Bad debt expense Dr2449 Allowance for doubtful accounts Cr2449 Q 2) Part 1:- Credit sales = 0.8* 1200000=960000 Net Credit Sales= 960000-5000-10000=945000 Bad debt Expense, before adjustment =945000*0.03=28350 Allowance for doubtful accounts, debit balance=12000
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Bad debt Expense, adjusted=40350 Part 2:- Bad debt Expense=99000 Customer Accounts written off as uncollectible= 10000 Allowance for doubtful accounts balance= 89000 Accounts receivable, net of Allowance for doubtful accounts= 880000 Gross Accounts receivable= 880000+89000=969000 Part 3:- Allowance for doubtful accounts, opening= 22000 Establishment of accounts written off in previous years=4000 Bad debt expense=4100000*0.06=246000 Customer Accounts written off= 246000*0.03=7380 Allowance for doubt full accounts, closing=22000+4000+246000-7380=264620
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assignment 3 solution - ACCT 100 Assignment 3 Solution...

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