Credit Losses Based on Credit Sales Smith & Sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which were $1,900,000 during the year. On December 31, the Accounts Receivable balance was $300,000, and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustment. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. (Do not use negative signs with your answers.) Fin Current Assets: Accounts Receivable $ 240,600 eli-LE9,400 Less: Allowance for Doubtful Accounts $81.200

Question
Credit Losses Based on Credit Sales Smith & Sons uses the allowance method
of handling its credit losses. It estimates credit losses at two percent of credit
sales, which were $1,900,000 during the year. On December 31, the Accounts
Receivable balance was $300,000, and the Allowance for Doubtful Accounts had
a credit balance of $21,400 before adjustment.
Show how Accounts Receivable and the Allowance for Doubtful Accounts would
appear in the December 31 balance sheet.
(Do not use negative signs with your answers.)
Fin
Current Assets:
Accounts Receivable
$ 240,600
eli-LE9,400
Less: Allowance for Doubtful Accounts
$81.200

Image Transcription

Credit Losses Based on Credit Sales Smith & Sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which were $1,900,000 during the year. On December 31, the Accounts Receivable balance was $300,000, and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustment. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet. (Do not use negative signs with your answers.) Fin Current Assets: Accounts Receivable $ 240,600 eli-LE9,400 Less: Allowance for Doubtful Accounts $81.200

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