During the current year, Sun Electronics, Incorporated, recorded credit sales of $760,000. Based on prior...
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During the current year, Sun Electronics, Incorporated, recorded credit sales of $760,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales.
On November 13 of the current year, an account receivable for $430 from a prior year was determined to be uncollectible and was written off.
At year-end, the appropriate bad debt expense adjustment was recorded for the current year.
Required:
Indicate the effects of the transactions in the following table. Indicate the accounts affected and enter decreases to account categories with a minus sign.
During the current year, Sun Electronics, Incorporated, recorded credit sales of $760,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales. a. On November 13 of the current year, an account receivable for $430 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. Required: Indicate the effects of the transactions in the following table. Indicate the accounts affected and enter decreases to account categories with a minus sign
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