Question
Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $210,000. Its
Exercise 7-6 (Algo) Recording and reporting allowance for doubtful accounts LO P2 In its first year of operations, Cloudbox has credit sales of $210,000. Its year-end balance in accounts receivable is $11,000, and the company estimates that $2,000 of its accounts receivable is uncollectible. Prepare the year-end adjusting entry to estimate bad debts expense. Prepare the current assets section of Cloudboxs classified balance sheet assuming Inventory is $24,500, Cash is $16,500, and Prepaid Rent is $3,250. Note: The company reports Accounts receivable, net on the balance sheet.
Dec31 Record the year-end adjusting entry to estimate bad debts expense.
Prepare the current assets section of Cloudboxs classified balance sheet assuming Inventory is $24,500, Cash is $16,500, and Prepaid Rent is $3,250. Note: The company reports Accounts receivable, net on the balance sheet.
CLOUDBOX
Balance Sheet
Assets
Current assets
Total current assets $0
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Accounting Information Systems Understanding Business Processes
Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer
3rd Edition
1742165559, 978-1742165554
