Ch 8 Q 2

Nyguen Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31, 2024. 1. Accounts receivable were $28.5 million (all credit) at the end of 2024 . Although no specific customer accounts have been shown to be uncollectible, the company estimates that 1% of accounts receivable will eventually prove uncollectible. 2. Nyguen Electronics is the plaintiff in a $4.5 million lawsuit filed against a supplier. The suit is in final appeal, and attorneys advise it is virtually certain that Nyguen Electronics will win and be awarded $3 million. 3. In November 2024, Nyguen Electronics became aware of a design flaw in one of its digital camera models. A product recall appears probable and would likely cost the company $550,000. 4. Nyguen Electronics is the defendant in a patent infringement lawsuit brought by a competitor. It appears reasonably likely Nyguen Electronics will lose the case, and potential losses are estimated to be in the range of $2 to $3 million. Journal entry worksheet 4 Accounts receivable were $28.5 million (all credit) at the end of 2024 . Although no specific customer accounts have been shown to be uncollectible, the company estimates that 1% of accounts receivable will eventually prove uncollectible. Record the adjusting entry. Note: Enter debits before credits