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Please help me with this assignment.................................................................................................. Accounts ReceivableAllowance for Doubtful Accounts: The accounting records of Sine.Com Ltd. provided the following for 20X9: Balance in accounts
Please help me with this assignment..................................................................................................
Accounts ReceivableAllowance for Doubtful Accounts: The accounting records of Sine.Com Ltd. provided the following for 20X9: Balance in accounts receivable, 1 January 20X9 $ 90,000 Balance in accounts receivable, 31 December 20X9 120,000 Balance in allowance for doubtful accounts, 1 January 20X9 3,000 (cr.) Accounts already written off as uncollectible during 20X9 5,500 1. Six percent of the uncollected accounts receivable at year-end will be uncollectible. 2. Aging of the accounts receivable at the end of the period indicated that 80% would incur a 2% loss, while the remaining 20% would incur a 10% loss. Required: 1. For each of the two alternatives listed above, give the following: 1. 20X9 adjusting entry 2. Ending 20X9 balance in the allowance account 3. An evaluation of the alternative 2. Explain which of the two alternatives you would recommendStep by Step Solution
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