Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kansas Furniture Mart had sales of $1150,000 during 2015, including $600,000 of sales on credit. Balances on December 31, 2015, were Accounts Receivable, $120,000, and
Kansas Furniture Mart had sales of $1150,000 during 2015, including $600,000 of sales on credit. Balances on December 31, 2015, were Accounts Receivable, $120,000, and Allowance for Doubtful debts, $10,000. For 2015, collections of accounts receivable were $560,000. Uncollectible account expense was estimated 2% of credit sales, as in previous years. Write-offs of bad debts during 2015 were $9,000.
Required:
a. Prepare journal entries concerning the preceding information for 2015.
b. Show the ending balances of the balance sheet accounts on December 31, 2015.
c. Based on the given data, would you advise Eleanor Sarkowski, the president of the store, that the 2% estimated doubtful debt rate appears adequate?
Note ---- I have asked this question 4 times and each time i got different answer with different solution and i am tired now
Please carefully read and answer all 3 Parts of question (Thanks)---
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started