Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Textbook Question
Chapter 9, Problem 2P
Techno Designs Store uses the
To finish the analysis, the following accounts need to be classified:
From past experience, the company has found that the following rates are realistic for estimating uncollectible accounts:
REQUIRED
- 1. Complete the aging analysis of accounts receivable.
- 2. Compute the end-of-year balances (before adjustments) of Accounts Receivable and Allowance for Uncollectible Accounts.
- 3. Prepare an analysis computing the estimated uncollectible accounts. (Round to the nearest whole dollar.)
- 4. How much is Techno Designs Store’s estimated uncollectible accounts expense for the year? (Round the adjustment to the nearest whole dollar.)
- 5. What role do estimates play in applying the aging analysis? What factors might affect these estimates?
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