Question
Salalah companys recent financial statements showed the following information. Net Sales 250,000 OMR Accounts Receivables 180,000 OMR The management made two estimates for the uncollectible
Salalah company’s recent financial statements showed the following information.
Net Sales | 250,000 OMR |
Accounts Receivables | 180,000 OMR |
The management made two estimates for the uncollectible receivables
- It can be 4.5 % of net sales or
- It can be 3.2 % of accounts receivables
Calculate and record journal entries in each case.
If the company had already recognized an allowance amount of 8,000 OMR, make the journal entry. In this question, make the solution only for net sales case
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
