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4 Accounting questions

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Show your work/computations. Explain your answers.;1. What are the essential features of the allowance method of accounting for bad debts? Why is the direct write-off method not considered acceptable per GAAP?;2. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-accounts method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Uncollectible accounts expense reported on the income statement?;3. The Allowance for uncollectible accounts currently has a debit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet?;4.;COLLAPSE;The following information is from the 2013 records of ABC Corp.;Accounts receivable, December 31, 2013;$20,000 (debit);Allowance for uncollectible accounts, December 31, 2013;prior to adjustment;600 (debit);Net credit sales for 2013;95,000;Accounts written off as uncollectible during 2013;7,000;Cash sales during 2013;27,000;Uncollectible accounts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. Which of the following will be the amount of Uncollectible accounts expense?

 

Paper#76921 | Written in 18-Jul-2015

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