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Q3: On December 31, 2016, the balance in Accounts Receivable was $308,000 and net credit sales amounted to $2,700,000 during 2016. An aging analysis of
Q3: On December 31, 2016, the balance in Accounts Receivable was $308,000 and net credit sales amounted to $2,700,000 during 2016. An aging analysis of the accounts receivable indicated that $31,000 in accounts are expected to buncollectible. Past experience has shown that about 1% of net credit sales eventually are uncollectible. Instructions Prepare the adjusting entries to record estimated bad debt expense using the (1) percentage of sales basis and (2) the percentage of receivables basis under each of the following independent assumptions: (a) Allowance for Doubtful Accounts has a credit balance of $1,300 before adjustment (b) Allowance for Doubtful Accounts has a debit balance of $270 before adjustment. Question # 2: Suppose that you are a manager of the marketing department in an international business organization. Explain briefly how you can utilize modern technology to conduct market research besides providing a better service to your customers? (10 marks) Q3: On December 31, 2016, the balance in Accounts Receivable was $308,000 and net credit sales amounted to $2,700,000 during 2016. An aging analysis of the accounts receivable indicated that $31,000 in accounts are expected to buncollectible. Past experience has shown that about 1% of net credit sales eventually are uncollectible. Instructions Prepare the adjusting entries to record estimated bad debt expense using the (1) percentage of sales basis and (2) the percentage of receivables basis under each of the following independent assumptions: (a) Allowance for Doubtful Accounts has a credit balance of $1,300 before adjustment (b) Allowance for Doubtful Accounts has a debit balance of $270 before adjustment. Question # 2: Suppose that you are a manager of the marketing department in an international business organization. Explain briefly how you can utilize modern technology to conduct market research besides providing a better service to your customers? (10 marks)
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