Concept explainers
Applying the allowance method to account for uncollectibles
Learning Objective 3 |
The
a Sales revenue on account. $273,400 (ignore Cost of Goods Sold).
b Collections on account. $223,000.
c Write-offs of uncollectibles, $5,900
d. Bad debts expense of $5200 was recorded
Requirements
1 Journalize Signature Lamp Company’s transactions for 2018 assuming Signature Lamp Company uses the allowance method.
2
3. Show how accounts receivable would be reported on the balance sheet at December 31, 201 8.
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EBK HORNGREN'S ACCOUNTING
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