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Cooper, Inc. has a Net Realizable Value of Accounts Receivable of $864,000 at the end of 2014. Their Allowance for Uncollectible Accounts is $93,000. They
Cooper, Inc. has a Net Realizable Value of Accounts Receivable of $864,000 at the end of 2014. Their Allowance for Uncollectible Accounts is $93,000. They have credit sales of $2,900,000 in 2015 and collections $3,250,000. They write off $74,000 in uncollectible accounts in 2015. Based on management estimates, they require an allowance for doubtful accounts of 8% of gross accounts receivable at the end of 2015. REQUIRED: 1. Prepare all required journal entries for 2015 related to accounts receivable using the allowance method. 2. Prepare all required journal entries for 2015 related to accounts receivable using the direct write-off method. 3. Provide the income statement and balance sheet amounts for 2015 for accounts receivable and bad debts
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