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CP 7-5 Impulse Inc. had the following unadjusted account balances at December 31, 2019, its year-end. Account Balances Debit $125,000 Credit Accounts Receivable Allowance for Doubtful Accounts $ 3,000 Sales 750,000 Impulse estimates its uncollectible accounts as five per cent of its December 31 accounts receivable balance. Required: 1. Calculate the amount of estimated uncollectible accounts that will appear on Impulse's balance sheet at December 31, 2019. 2. Calculate the amount of bad debt expense that will appear on Impulse's income statement at December 31, 2019. 3. Prepare a partial balance sheet at December 31, 2019 showing accounts receivable, allowance for doubtful accounts, and the net accounts receivable.

CP 7-5 Impulse Inc. had the following unadjusted account balances at December 31, 2019, its year-end. Account Balances Debit $125,000 Credit Accounts Receivable Allowance for Doubtful Accounts $ 3,000 Sales 750,000 Impulse estimates its uncollectible accounts as five per cent of its December 31 accounts receivable balance. Required: 1. Calculate the amount of estimated uncollectible accounts that will appear on Impulse's balance sheet at December 31, 2019. 2. Calculate the amount of bad debt expense that will appear on Impulse's income statement at December 31, 2019. 3. Prepare a partial balance sheet at December 31, 2019 showing accounts receivable, allowance for doubtful accounts, and the net accounts receivable.

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Receivables
Section: Chapter Questions
Problem 8.18EX: Entries for bad debt expense under the direct write-off and allowance methods Seaforth International...
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5:12 ul 5G ACC111-Student Te... customer accounts Dec. 31 Estimated uncollectible accounts as $4,500 (1%% of sales). CHAPTER SEVEN/ Cash and Receivables First US Edition Required: 1. Prepare journal entries to record the above transactions. 2. Assume that management is considering a switch to the balance sheet method of calculating the allowance for doubtful accounts. Under this method, the allowance at the end of 2021 is estimated > to be $2,000. Comment on the discrepancy between the two methods of estimating allowance for doubtful accounts. CP 7-5 Impulse Inc. had the following unadjusted account balances at December 31, 2019, its year-end. Account Balances Debit Credit Accounts Receivable $125,000 $ 3,000 Allowance for Doubtful Accounts Sales 750,000 Impulse estimates its uncollectible accounts as five per cent of its December 31 accounts receivable balance. Required: 1. Calculate the amount of estimated uncollectible accounts that will appear on Impulse's balance sheet at December 31, 2019. 2. Calculate the amount of bad debt expense that will appear on Impulse's income statement at December 31, 2019. 3. Prepare a partial balance sheet at December 31, 2019 showing accounts receivable, allowance for doubtful accounts, and the net accounts receivable. CHADTED CEIVEN ICach snd Darakshlar Eiret IIC E Aininn Dashboard Calendar To Do Notifications Inbox 因
Transcribed Image Text:5:12 ul 5G ACC111-Student Te... customer accounts Dec. 31 Estimated uncollectible accounts as $4,500 (1%% of sales). CHAPTER SEVEN/ Cash and Receivables First US Edition Required: 1. Prepare journal entries to record the above transactions. 2. Assume that management is considering a switch to the balance sheet method of calculating the allowance for doubtful accounts. Under this method, the allowance at the end of 2021 is estimated > to be $2,000. Comment on the discrepancy between the two methods of estimating allowance for doubtful accounts. CP 7-5 Impulse Inc. had the following unadjusted account balances at December 31, 2019, its year-end. Account Balances Debit Credit Accounts Receivable $125,000 $ 3,000 Allowance for Doubtful Accounts Sales 750,000 Impulse estimates its uncollectible accounts as five per cent of its December 31 accounts receivable balance. Required: 1. Calculate the amount of estimated uncollectible accounts that will appear on Impulse's balance sheet at December 31, 2019. 2. Calculate the amount of bad debt expense that will appear on Impulse's income statement at December 31, 2019. 3. Prepare a partial balance sheet at December 31, 2019 showing accounts receivable, allowance for doubtful accounts, and the net accounts receivable. CHADTED CEIVEN ICach snd Darakshlar Eiret IIC E Aininn Dashboard Calendar To Do Notifications Inbox 因
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