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I need help with E8-3.... On January 10. Connor Bybee uses his Sheridan Co. credit card to purchase merchandise from Sheridan Co. for pound9.000. On
I need help with E8-3....
On January 10. Connor Bybee uses his Sheridan Co. credit card to purchase merchandise from Sheridan Co. for pound9.000. On February 10, Bybee is billed for the amount due of pound9,000. On February 12. Bybee pays pound6.000 on the balance due. On March 10, Bybee is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Sheridan Co.'s books related to the transactions that occurred on January 10. February 12. and March 10. The ledger of Elburn ASA at the end of the current year shows Accounts Receivable pound110.000, Sales Revenue element 840,000, and Sales Returns and Allowances element 28.000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31. assuming Elburn determines that T. Thum's element of 1, 500 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of element of 2, 500 in the trial balance, journalize the adjusting entry at December 31. assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of element of 200 in the trial balance, journalize the adjusting entry at December 31. assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. Leland Ltd. has accounts receivable of pound98.100 at March 31. Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of pound 900 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is shown belowStep by Step Solution
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