Question
During Burns Companys first year of operations, credit sales totaled $146,000 and col-lections on credit sales totaled $108,000. Burns estimates that bad debt losses will
During Burns Company’s first year of operations, credit sales totaled $146,000 and col-lections on credit sales totaled $108,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $330 of specific accounts as uncollectible.
Required: Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. Show the year-end balance sheet presentation for accounts receivable.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
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