Please attached information and questions. The December 31, 2013 balance sheet of Barone Company had Accounts Receivable of $400,000 and acredit balance in Allowance for Doubtful Accounts of $32,000. During 2014, the following transactionsoccurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections fromcustomers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 werecollected. Instructions(a) Journalize the 2014 transactions.(b) if the company uses the percentage-of-sales basis to estimate bad debt expense and anticipates 3%of net sales to be uncollectible, what is the adjusting entry at December 31, 2014?(c) If the company uses the percentage of receivables basis to estimate bad debt expense anddetermines that uncollectible accounts are expected to be 8% of accounts receivable, what is theadjusting entry at December 31, 2014?(d) Which basis would produce a higher net income for 2014 and by how much?

Sales = 1500000 Cash received = sales - sales returns = 1500000-50000 =1250000

The December 31, 2013 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2014, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 vwere collected.

The December 31, 2013 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2014, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 vwere collected.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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