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Feed the Birds Corporation reviewed the following account balances from its accounting records for the year ended December 31, 2006, before adjustment: Accounts receivable $90,000
Feed the Birds Corporation reviewed the following account balances from its accounting records for the year ended December 31, 2006, before adjustment: Accounts receivable $90,000 Allowance for Uncollectible Accounts (before adjustment) 1,750 credit Credit sales during 2006 480,000 Collections from customers during 2006 510,000 Required: a. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. Compute the uncollectible account expense for 2006. b. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. c. Determine the balance in the Allowance for Uncollectible Accounts account after the adjusting entry is recorded. d. Uncollectible accounts are determined by the aging method to be $2,740. Compute the uncollectible account expense for 2006. e. Uncollectible accounts are determined by the aging method to be $2,740. Compute the net realizable value of accounts receivable on December 31, 2006
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