Answered step by step
Verified Expert Solution
Question
1 Approved Answer
posting it 4th time... don't attempt if not 100% sure... or will be downvoted Method - Calculation of Bad Apple Co. recorded a credit sale
posting it 4th time... don't attempt if not 100% sure... or will be downvoted
Method - Calculation of Bad Apple Co. recorded a credit sale of $100,000 in 2010. The balance in Apple's accounts receivable on Dec 31, 2010 was allowance for uncollectible assuming over 90 days old). The balance in allowance for uncollectible account is $500 before adjustment. Calculate the 1. Apple estimates that 1% of its credit sales will not be collected 2. Apple estimates that 3% of year-end accounts receivable will not be collected 3. Apple estimates the following uncollectible % for year-end accounts receivable - 1% for 0-30 days, 3% for 31- 60 days, 5% for 61-90 days and 10% above 90 days Pass J/E for all the 3 cases as aboveStep 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