Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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 above

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

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions