Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the company's accounting manager provides. Ernie with the following information, before any adjustment. In the previous year. Sleep Tight Beding reported operating income (after adjustment) of $292,000 Einie knows that it s important to report an upward trend in earnings. This is important not only for Emie's compensation and employment, but also for the company's compony's stock. This has caused Ernie many sleepless nights. Required: 1. Record the adjusting entry for uncollectible accounts using the accounting manager's estimate of 8 ti of accounts receivable 2.a. After the adjusting entry is recorded in requirement t what is the revised amount of operating income? 2-b. Does operating income increase or decrease compared to the previous year? 3. Ernie instructs the accounting manager to record the adjusting entry for uncollectible accounts using 38 rather than 8% of accounts receivable. After this adjustment, does operating incoine increase or decresse compared to the previous year? 4. By how much would total assets and expenses be misstated using the 3% amount? Complete this question by entering your answers in the tabs below. Record the adjusting entry for uncoliectible occounts using the accounting manager s estimate of Bs of accounts recelvabie. (If no entry Record the adjusting entry for uncollectible accounts using the accounting manager's estimate of 8% of accounts teceivabie. (ir no entry Is required for a particular transaction/event, select "No Journal Entry Recquired" in the first accotint fief.). Journal entry worksheet Record the adjusting entry for uncollectible accounts. Note: Enter debits before credits. report an upward trend in earnings. This is important not only for Ernie s compensation and empioyment, but a stock price. If investors see a decline in earnings, the stock price could drop significantly, and Emie owns a lart Required: 1. Record the adjusting entry for uncollectible accounts using the accounting manager's estimate of 8% of acce 2-a. After the adjusting entry is recorded in reguirement 1 , what is the revised amount of operating income? 2-b. Does operating income increase or decrease compared to the previous year? 3. Ernie instructs the accounting manager to record the adjusting entry for uncollectible accounts using 3% rat. receivable. After this adjustment, does operating income increase or decrease compared to the previous yeart 4. By how much would total assets and expenses be misstated using the 3% amount? Complete this question by entering your answers in the tabs below. After the adjusting entry is recorded in requirement 1 , what is the revised amount of operating income? report an upward trend in earnings. This is important not only for Ernie's compensation and employment b stock price. If investors see a decline in earnings, the stock price could drop significantly, and Ernie owns a company's stock. This has caused Emie many sleepless nights, Required: 1. Record the adjusting entry for uncollectible accounts using the accounting manager's estimate of 8% of 2-a. After the adjusting entry is recorded in requirement 1 . What is the revised amount of operating income? 2-b. Does operating income increase or decrease compared to the previous year? 3. Ernie instructs the accounting manager to record the adjusting entry for uncollectible accounts using 3% receivable. After this adjustment, does operating income increase or decrease compared to the previous ye 4. By how much would total assets and expenses be misstated using the 3% amount? Complete this question by entering your answers in the tabs below. By how much would total assets and expenses be misstated using the 3% amount
