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Hi, I am having a very hard time doing the following, can anyone help? On December 31, 2011 the unadjusted trail balance of Alex Inc.,
Hi, I am having a very hard time doing the following, can anyone help?
On December 31, 2011 the unadjusted trail balance of Alex Inc., included the following accounts:
debit credit
Sales (90% represent credit sales) 900,000
accounts receivable 300,000
allowance for doubtful accounts 300
- Assume Alex estimates bad debts expense as 1% of credit sales. Prepare the adjusting entry for bad debts on December 31.
- Instead of #1, assume Alex estimates bad debts expense as 3% of year end gross accounts receivable. Prepare the adjusting entry for bad debts on 12/3/2011.
- Based on your answer in #2 assume Alex estimates bad debts expense as 3% of year end gross accounts receivable After the adjusting entry, the net realizable value of Alex's accounts receivable in the Dec. 31, 2011 balance sheet is : $_______________________
- Based on you answer to number 2 Alex writes off an uncollectible customer account on 1/8/12 in the amount of $800, prepare the journal entry to write off the uncollectible account receivable.
- based on your answer in4 after the entry to write off the account receivable on 1/8/12 the net realizable value of Alex's accounts receivables in the 1/8/12 balance sheet is $_________
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