1) The amount of uncollectible accounts at the end of the year is estimated to...
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Accounting
1) The amount of uncollectible accounts at the end of the year is estimated to be $37,500, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $13,000 credit before adjustment. What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year? a. $13,000. b. $37,500.
2) Cary Inc. reported net credit sales of $450,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $875. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense? a. 3,500 b. 4,500 c. 2,625
3) Samuel, Inc. has Accounts Receivable of $270,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable? a.253,000 b. $251,300
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