Question
Alco Co uses the % of A/R allowance method $300,000 Ending A/R Balance Management estimates 4% uncollectible, AFDA has credit balance $3,000 before the adjustment;
Alco Co uses the % of A/R allowance method $300,000 Ending A/R Balance Management estimates 4% uncollectible, AFDA has credit balance $3,000 before the adjustment;
1-What is the adjusting entry for Bad Debt Expense? What is the impact to A=L+SE If FAIL to do adjusting entry, what is the impact on the acct? equation?
2-JE for $5,000 needs to be written off for customers who are unable to pay. What is the impact to A=L+SE If FAIL to do adjusting entry, what is the impact on the acct? equation?
3-What is the Net Realizable Value of A/R before and after the write-off?
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Solution Part 1 Ending balance in AR 300000 Estimated uncollectible 4 of 300000 12000 AFDA cred...
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
