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principles of accounting: David Alex WHICHONE company had the following balances in the following accounts... 6. David Alex WHICHONE company had the following balances in
principles of accounting: David Alex WHICHONE company had the following balances in the following accounts...
6. David Alex WHICHONE company had the following balances in the following accounts: Accounts Receivable $800,000 Allowance for Uncollectible Accounts (Credit Balance) $9,000 Sales $800,000 (i) Assuming the company uses 1% of Sales to make provision for doubtful accounts, make necessary entries to provide for doubtful accounts. (i) One the customers defaulted and his account was written off in the amount of $2,000 ii) The customer came back and paid $1,500 of the account previously written off. Required: (1) Make necessary entries for ali, li, and ili); (2) show the balance in the Allowance for Uncollectible Accounts Expense after all the entries in a(l, ii, and ii) above; and (3) Show the Net Realizable Value of Accounts Receivable a) Independent of item "a" above, assuming the company uses 1% of Accounts Receivable balance to provide for bad debts, (1) Make necessary entries to provide for bad debts and (2) Show the balance in the allowance account after your adjusting entry in item b(1). b)Step by Step Solution
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