Guinevere Company has the following data extracted from its Accounts Receivable records at June 30, 2011CustomerABCDEFGсTotalsBalance Current$ 8,000 $ 5,000$ 2,000$ 4,000 $ 4,000$ 9,000 $ 2,000$ 3,000$ 2,000$ 6,000 $ 6,000$ 7,000 $ 3,000$39,000 $22,000●31 -75 Over 75daysdays$1,000$ 2,000$2,000$ 1,000$3,000$8,000$ 6,000$1,000$1,000$9,000• Guinevere's sales terms are 1/15 n/30 and it records sales at the gross amount of the invoice.Guinevere's year end is June 30• The unadjusted balance in the Allowance for Doubtful Accounts at June 30 is $8,000 dr.• Guinevere makes average sales of $2,000,000 per year and averages write offs of uncollectible balances of $100,000 per year.• Sales for the year ended June 30, 2010 are $1,400,000 credit sales and $400,000 cash sales• Guinevere has a very conservative receivables management strategy.• No adjusting entries have been recorded at June 30If Guinevere used the Allowance Method (aging) to estimate bad debts and by a detailed review of the above aged trial balance decided that an allowance of $30,000 was appropriate, then the adjustingentry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of: If Guinevere used the Allowance Method (aging) to estimate bad debts and by a detailed review of the above aged trial balance decided that an allowance of $30,000 was appropriate, then the adjustingentry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of:Multiple Choice$90,000Some other amount$38,000$30,000$8,000X

The uncollectibles amunt can be calculated by two methods: Direct write-off and Accounts receivable…

If Guinevere used the Allowance Method (aging) to estimate bad debts and by a detailed review of the above aged trial balance decided that an allowance of $30,000 was appropriate, then the adjusting entry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of: Multiple Choice $90,000 Some other amount $38,000 $30,000

If Guinevere used the Allowance Method (aging) to estimate bad debts and by a detailed review of the above aged trial balance decided that an allowance of $30,000 was appropriate, then the adjusting entry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of: Multiple Choice $90,000 Some other amount $38,000 $30,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 2SEQ: On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services...

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