Unformatted text preview: xpense Effect of Event 3 Net
Before Event 3
Acc. rec. $4,050
$3,980 After Event 3
Acc. rec. $4,000
$3,980 Net realizable value of accounts
receivable did not change as a result of
the Transaction 4(a)
At year-end it was estimated that 2% of
credit sales will never be collected.
- 180 (Allow.) Liab.
n/a + C. Stock + Ret. Earn.
- 180 Income Statement: net income decreased Statement of Changes in Equity: equity decreased
Statement Statement of Cash Flows: cash flow was not
affected Selected T-accts for Our Co.
xx beg. bal.
Allow. for Doubt. Acc.
(bal.) 200 Revenue
9,000 Bad Debt Expense
180 Transaction 4(b)
At year-end it was estimated that 4% of
accounts receivables will never be
- 140 (Allow.) Liab.
n/a + C....
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This document was uploaded on 10/29/2013.
- Fall '13