Littlerock Surveying showed the following partial unadjusted results at May 31, 2020, its month-end: Required a. Assuming

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Littlerock Surveying showed the following partial unadjusted results at May 31, 2020, its month-end:

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Required

a. Assuming Littlerock estimates bad debts to be 2.5% of sales, prepare the adjusting entry at May 31, 2020.

b. Show how accounts receivable would be shown on the May 31, 2020, balance sheet using your calculations in (a).

Part 2

Required

c. Instead of (a) above, prepare the adjusting entry at May 31, 2020, assuming that Littlerock estimates bad debts to be based on the following aging analysis.

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d. Show how accounts receivable would be shown on the May 31, 2020, balance sheet using your calculations in (c).

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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