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please help me fast and show me caculation Question 2 (25 marks) Hanoi Company provides for Doubtful Account based on 2.5% of gross Accounts Receivable.
please help me fast and show me caculation
Question 2 (25 marks) Hanoi Company provides for Doubtful Account based on 2.5% of gross Accounts Receivable. The following data is available for 2020: $ 4,500,000 Credit sales during 2020 Account Receivable 1,300,000 45,000 10,000 Allowance for Doubtful Accounts (1/1/2020) Collections of accounts written off in prior year(Customers credit was re-established) Customer accounts written off as uncollectibleduring 2020 33,200 (a) Make the adjusting entry to record the Allowance for Doubtful Account on December 31, 2020. (6 marks) (b) Repeat part a, assuming that Allowance for Doubtful Account has the balance of $5,500 debit as of 1/1/2020. (6 marks) (c) According to part a, what is the balance for Cash Realizable Value as of December 31, 2020? (6 marks) (d) Discuss the reasons why the allowance method is preferable to direct write-off method. (7 marks) Step by Step Solution
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