Question
Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 Skip to question [The following information applies to the questions displayed below.] At December
Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3
Skip to question
[The following information applies to the questions displayed below.]
At December 31, Hawke Company reports the following results for its calendar year.
| Cash sales | $ 560,000 |
|---|---|
| Credit sales | $ 1,400,000 |
In addition, its unadjusted trial balance includes the following items.
| Accounts receivable | $ 756,000 | debit |
|---|---|---|
| Allowance for doubtful accounts | $ 7,600 | debit |
Problem 7-2A (Algo) Part 3
3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
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Management Accounting For Business
Authors: Colin Drury, Mike Tayles
8th Edition
1473778808, 978-1473778801
