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B Durfng Its rst year at dperatlpns, Wendy Ltd had credlt sales at $3 mllllc-n, df whlch Sauc- euc- remalned uncullected at yearend. The credlt...

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Please help me answer question A and B in this exercise

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BEy.B Durfng Its first year at dperatlpns, Wendy Ltd had credlt sales at $3 mllllc-n, df whlch Sauc- euc- remalned
uncullected at year—end. The credlt manager estlmates that 540 one of these recelyahles wlll become
uncullectahle. a. Prepare the Journal entry to record the estlmated uncdllectables. {Assume the alldwance account has an
unadjusted balance of nll.] I). Prepare the current assets sectlpn of the statement at flnanclal pusltlun fur IWendy Ltd, assuming that In
addltlc-n tn the recelyahles It has cash of Set:- 000, lnyentury at $130 due, and prepaid expenses net 513 pop.

Top Answer

a Bad debt Expense Dr.........40000 Allowance for Doubtful Debt .....................Cr 40000 b Current Asset... View the full answer

1 comment
  • Total Current Asset................................................793000
    • Whitswan
    • Apr 04, 2018 at 9:14am

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