Chp 6 problems Sheet1

2 which company appears to have the beer credit

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Unformatted text preview: or Bad Debts was $300,000. Write ­offs of uncollec+ble accounts during 2012 totaled $360,000. Reported bad debt expense for 2012 was $430,000, computed using the percentage of sales method. Thomas & Steffen, the auditors of Bauer's financial statements, compiled an aging accounts receivable analysis of Bauer's accounts at the end of the year of 2012. This analysis has led Thomas & Steffen to es+mate that, of the accounts receivable Bauer has as of the end of 2012, $650,000 will ul+mately prove to be uncollec+ble. Given their analysis, Thomas & Steffen, the auditors, think that Bauer should make an adjustment to its 2012 financial statements. What adjus+ng journal entry should Thomas & Steffen suggest? E 6 ­34 Ra+o Analysis The following are summary financial data for Parker...
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