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At December 31, Dunder Mifflin Corporation reports the following for its calendar year: Cash Sales: $168,715 Credit Sales: $498,380 The unadjusted trial balance includes the
At December 31, Dunder Mifflin Corporation reports the following for its calendar year: Cash Sales: $168,715 Credit Sales: $498,380 The unadjusted trial balance includes the following: Accounts receivable: $142,110 Allowance for doubtful accounts (ADA): \$245 debit balance Use this information to answer each of following questions. 1. Provide the necessary year-end adjusting entry assuming bad debts are estimated to be 3% of TOTAL sales. ( 10 pts.) 2. After providing the necessary adjusting entry assuming bad debts are estimated to be 3% of total sales, what are the Net Receivables shown on the December 31 balance sheet. ( 5 pts.)
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