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Problem 14 Sear, Roebuck & Co. Allowance for Doubtful Accounts

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Problem 14 15 points;Sear, Roebuck & Co. estimated it would loose as bad debts an amount equal to one half;of 1% of it?s $450,000 credit sales made for the 2012. On December 31, 2012, at the end;of the annual accounting period, Sears, Roebuck & Co. made an entry to it?s Allowance for;Doubtful Accounts equal to the estimate. Prior to this entry the Allowance for Doubtful;Accounts had a debit balance of $600. On April 1, 2013, Sears, Roebuck & Co. decided;the $340 account of Ron Koplen was uncollectible and wrote it of as a bad debt. Two;months later, on June 1, Ron Koplen paid in full Sear, Roebuck & Co. Give the entries;required by Sears for the following transactions;A) December 31,2012;B) April 1, 2013;C) June 1, 2013;D) What is the balance in the Allowance for Doubtful Accounts as of January 1, 2013?

 

Paper#79465 | Written in 18-Jul-2015

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