4. Assume that the percentage of sales method was used instead by the company and that on December 31s, 2010 5% of 2010 's credit sales are estimated to be uncollectible. Assume Sales for 2010 were 520,000 (60% relates to cash sales) You are now required to: a. Determine the amount to be charged to the uncollectible expense account. b. (1) Prepare the Allowance for uncollectible account for 2010, using this method (ii) Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 2010
4. Assume that the percentage of sales method was used instead by the company and that on December 31s, 2010 5% of 2010 's credit sales are estimated to be uncollectible. Assume Sales for 2010 were 520,000 (60% relates to cash sales) You are now required to: a. Determine the amount to be charged to the uncollectible expense account. b. (1) Prepare the Allowance for uncollectible account for 2010, using this method (ii) Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 2010
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 45P
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