Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At the beginging of 2010, EZ Tech Company accounts receivable Balance was 140,000 and the balance in Allowance for Doubtful Accounts was 2,350 (Cr.). EZ
At the beginging of 2010, EZ Tech Company accounts receivable Balance was 140,000 and the balance in Allowance for Doubtful Accounts was 2,350 (Cr.). EZ Tech sales in 2010 were 1,050,000, 80 % of which were on credit, Collections on account during the year were 670,00. the company wrote off 4,000 of uncollectible accounts during the year. 1. prepare summary journal entries related to the sale, collections, and write-offs of accounts receivable during 2010. 2. prepare journal entries to recognize bad debts assuming that(a) bad debts expense is 3% of credit sales and(b)amounts expected to be uncollectectible are 6% of the year end accunts receivable. 3.What is the net realizable value of accounts receivable on dec 31,2010, under each assumption in (2)
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