Solomon had accounts receivable of $800,000 and an allowance for uncollectible accounts of $40,000 just...
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Accounting
Solomon had accounts receivable of $800,000 and an allowance for uncollectible accounts of $40,000 just before writing off an account receivable from Hopeless Company of $30,000 on 31 Dec 2020. The director of the Company wishes to provide an allowance for uncollectble accounts at 7.5 % of accounts receivable at year end (balance sheet approach). Required: a) After writing off amount due from Hopeless Company, what would be the closing balance in Solomon's Allowance for Uncollectible Accounts at 31 Dec 2020? (2 marks) b) Record all the adjusting journal entries on 31 Dec 2020. (6 marks) c) Show an extract of Balance Sheet at 31 Dec 2020 for the accounts receivable. (2 marks)
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