Question
Cuttlefish Company has a December 31 year end and has provided the following information (all accounts have normal balances): Accounts receivable balance January 1, 2019
Cuttlefish Company has a December 31 year end and has provided the following information (all accounts have normal balances): Accounts receivable balance January 1, 2019 $ 31,500 Allowance for doubtful accounts balance January 1, 2019 2,290 Allowance for sales discounts January 1, 2019 2,300 Total sales for 2019, net of sales returns (80% on credit) 730,000 Collections of accounts receivable during 2019 572,800 Bad debt write-offs during 2019 2,950 At year end, Cuttlefish estimates that 4% of outstanding accounts receivable was uncollectible and that discounts of 0.25% of sales will be taken. Required: 1. Calculate the 2019 year-end net accounts receivable balance for Cuttlefish. (Show and label your work) (5 marks) 2. Prepare the required year-end adjusting entries based on the information in part
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