Question
1. Before the 2019 year-end adjusting entries, Dunn Company's net credit sales of $400,000, accounts receivable balance was $120,000 and allowance for doubtful account $0.
1. Before the 2019 year-end adjusting entries, Dunn Company's net credit sales of $400,000, accounts receivable balance was $120,000 and allowance for doubtful account $0. Dunn estimates that 10% of the accounts receivable are uncollectible. What would Dunn Company?s net realizable value be for 2019?
$360,000 |
| $108,000 |
| $120,000 |
| $12,000 |
2. Moon Inc. factors $200,000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 2% of the accounts receivable for possible sales discounts and 1% for possible bad debt. What would Moon collect in cash the day that the accounts receivables are factored?
3. Before the 2019 year-end adjusting entries, Dunn Company's net credit sales of $400,000, accounts receivable balance was $120,000 and allowance for doubtful account $0. Dunn estimates that 10% of the accounts receivable are uncollectible. What would Dunn Company?s journal entry for the uncollectible amount be for 2019?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started