Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of 2015. Peter Dots has the following ledger balance During the year, credit sales amounted to $800,000. cash collected on credit sales

image text in transcribed

At the beginning of 2015. Peter Dots has the following ledger balance During the year, credit sales amounted to $800,000. cash collected on credit sales amounted to $760,000, and $18,000 has been written off. At the end of the year, the company adjusted for bed debts expense using the percent - of - sales method applied a rate, based on past history, of 2.5%. The ending balance of Accounts Receivable would be: A) $18,000. B) $62,000 C) $80,000 D) $40,000 At the beginning of 2015, Peter Dots has the following ledger balances: During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent - of - sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be: A) $6, 500. B) $6, 400. C) $7,000 D) $5,000 At the beginning of 2015, Peter Dots has the following ledger balances: During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, adjusted for bad debts expense using the aging method. The amount estimated as uncollectible was $25,000. The ending balance in the Allowance for Bad Debts would be: A) $18,000. B) $25,000. C) $30,000. D) $38.000 Accounts receivable has a balance of $30,000 and the Allowance for Bad Debts has a credit balance of $30,000. The allowance method is used. What is the net realizable value before and after a$2,000 Account Receivable is written off? A) $16,000; $15, 940 B) $14, 300; $14, 300 C) $16,000; $16,000 D) $27,000; $27,000 answer in the space provided or on a separate sheet of paper

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: David Ricchiute

7th Edition

0324117760, 978-0324117769

More Books

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago

Question

Effective Delivery Effective

Answered: 1 week ago