Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sammy's Sweets has a December 31, 2020 year end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful
Sammy's Sweets has a December 31, 2020 year end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful Accounts (AFDA) Sales ($3,200,000 cash sales) Debit $1,500,000 $46,000 $11,950,000 During the year, the company had returns of $78,000, half of which were due to credit sales. These numbers are NOT included in the numbers above. DO NOT ADD COMMAS OR DOLLAR SIGNS TO YOUR ANSWERS. IF THE ANSWER IS $25,000 YOU WILL RECORD IT AS 25000 REQUIRED: PART 1 Blank 1) What would be the Bad Debts Expense recorded at Dec 31, 2020 if bad debts are estimated to be 2% of net credit sales? Blank 2) What would be the ending balance on Dec 31, 2020 in the AFDA account, given the above adjustment? PART 2 - RETURN TO THE ORIGINAL DATA AND IGNORE PART 1: Blank 3) What would be the Bad Debts Expense recorded at Dec 31, 2020 if 4% of outstanding AR are expected to become uncollectable at that date? Blank 4) What would be the ending balance on Dec 31, 2020 in the AFDA account, given the above adjustment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started