Question
1. In 2018, Sony Corporation had net credit sales of $1,250,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $30,000.
1. In 2018, Sony Corporation had net credit sales of $1,250,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $30,000. During 2018, $20,000 of uncollectible accounts receivable were written off. Past experience indicated that the allowance should be 10% of the balance in account receivables. If the accounts receivable balance at December 31 was $400,00, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018?
2. Using the percentage -of-receivable method for recording bad debts expense, estimated uncollectible accounts are $23,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment, what is the amount of bad expense for that period.
3. Samsung corporation receives $1000,000, 5%, 3-months note receivable. The maturity vale of this note receivable will be
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