Occanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2019. This analysis disclosed the following information: Age Group Total Percentage Considered Uncollectible Not Yet Due 1- 30 days past due 31 - 60 days past due $52,000 $32,000 $13.000 1% 2% 8% What is the appropriate balance for Oceanside's Allowance for Impairment at December 31, 2019 OA $1,560 O B. $2,160 OC. 2% of credit sales in 2019 O D. $95,000

Occanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2019. This analysis disclosed the following information: Age Group Total Percentage Considered Uncollectible Not Yet Due 1- 30 days past due 31 - 60 days past due $52,000 $32,000 $13.000 1% 2% 8% What is the appropriate balance for Oceanside's Allowance for Impairment at December 31, 2019 OA $1,560 O B. $2,160 OC. 2% of credit sales in 2019 O D. $95,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PA: Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables....

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Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively', in the following year when paid or collected. The reported pretax income was 20,000 in 2018, 25,000 in 2019, and 23,000 in 2020. Required: 1. Compute the correct pretax income for 2018, 2019, and 2020. 2. Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes. 3. Prepare the journal entries necessary in 2021 if the errors are discovered at the end of that year. Ignore income taxes.