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Anyone who can help me with the question (b)??? Please write step by step, thanks BUSI 293 Assignment 2 Additional Hand-in Problem - Cartoons Inc.
Anyone who can help me with the question (b)??? Please write step by step, thanks
BUSI 293 Assignment 2 Additional Hand-in Problem - Cartoons Inc. The following information is provided regarding Cartoons Inc.'s accounts receivable and allowance for doubtful accounts: Accounts Receivable, January 1, 2016 Collections of Accounts Receivable during the year Write-offs of Accounts Receivable during the year Accounts Receivable, December 31, 2016 Allowance for Doubtful Accounts (December 31, 2016 balance (before bad debts adjusting entry) $1,250,000 $2,000,000 $ 350,000 $1,600,000 $ 75,000(debit) Required: (a) Calculate the credit sales for the year 2016. (b) Provide the journal entry that was made to write-off the uncollectible amounts during 2016. (c) Ignore your answer to (a) and assume that credit sales for 2016 were $3.75 million. Prepare the bad debts adjusting entry assuming that management estimates that 3.0% of the credit sales would be uncollectible. (d) After recording your entry from part (c), is the balance in the allowance for doubtful accounts adequate? Explain. 1Step by Step Solution
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