ACME Plumbing estimates that of each months net credit sales will be
uncollectibile. The sales for the first quarter were $ split evenly
throughout the quarter and of those sales were on account.
The second quarter saw a spike in sales in April, $ net credit sales
with May and June falling to $ credit sales each month.
The last half of the year had $ credit sales recorded.
Year end accounts receivable were $
The aging report showed $ current, $ over days and $
over days.
Management applied the following estimates of impairment on the groups
Current
plus
plus
Required
Would ACME Plumbing have to adjust their allowance for expected
credit losses before issuing their SFP
If so what would the journal entry be
