Description of this paper

Feed the Birds Corporation reviewed the following...

Description

Solution


Question

Feed the Birds Corporation reviewed the following account balances from its accounting records for the year ended December 31, 2006, before adjustment: Accounts receivable $90,000 Allowance for Uncollectible Accounts (before adjustment) 1,750 credit Credit sales during 2006 480,000 Collections from customers during 2006 510,000 Required: a. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. Compute the uncollectible account expense for 2006. b. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. c. Determine the balance in the Allowance for Uncollectible Accounts account after the adjusting entry is recorded. d. Uncollectible accounts are determined by the aging method to be $2,740. Compute the uncollectible account expense for 2006. e. Uncollectible accounts are determined by the aging method to be $2,740. Compute the net realizable value of accounts receivable on December 31, 2006.

 

Paper#8194 | Written in 18-Jul-2015

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