Question
Q1 Peach Company completed an aging of their accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period
Q1 Peach Company completed an aging of their accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the Allowance for Doubtful Accounts is a credit of $817. If Peach uses 5% of credit sales as their estimation for uncollectible accounts:
1) How much will the credit be to the Allowance for Doubtful Accounts?
2) How much will be the balance to the account be?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
