Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i wnat know this problem pelase answer to me thank you your help have a good day :) PROBLEM 4 Information related to Kiko Company

i wnat know this problem pelase answer to me
thank you your help
have a good day :) image text in transcribed
PROBLEM 4 Information related to Kiko Company for 31 December 2019 is summarized as following: Account Receivables $ 250,000,000 Allowance for Doubtful Accounts (CR) $ 7,500,000 Sales $ 820,000,000 Sales return $ 65,000,000 Kiko Company categorizes its account receivables based on their age: Age of Accounts Amount Estimated percentage uncollectible 1-30 days $ 100,000,000 1% 31-60 days $ 50,000,000 3% 61-90 days $ 55,000,000 5% Over 90 days $ 45,000,000 10% If Kiko Company uses allowance method for their uncollectible accounts: a) Prepare the adjusting entry if its bad debt expense assumes to be 1% of net sales! b) Prepare the adjusting entry if its bad debt expense assumes to be 6% of Account Receivables! c) Prepare the adjusting entry if its bad debt expense assumption is based on age of accounts uncollectible! Accounting Principle 1 (Management) Module | Odd Term 2020-2021 53

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

5th Edition

1618532324, 9781618532329

More Books

Students also viewed these Accounting questions