Question
Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. Account Debit Credit Accounts receivable $ 77,000 Allowance for doubtful accounts
Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing.
| Account | Debit | Credit | |||
| Accounts receivable | $ | 77,000 | |||
| Allowance for doubtful accounts | $ | 1,240 | |||
| Sales (all on credit) | 543,000 | ||||
| Sales discounts | 15,000 | ||||
c. Record the adjusting entry required on December 31, 2021, to estimate uncollectible receivables, assuming it is based on 5% of receivables. d. Show how accounts receivable would appear on the December 31, 2021 balance sheet.
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Puzzling Auditing Puzzles
Authors: Janice P. Russell
1st Edition
0873894782, 978-0873894784
