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Sherman Oakes, Inc. uses the Allowance Method for uncollectible accounts and has the following information in its ledger (all balances are normal): Assuming the company's
Sherman Oakes, Inc. uses the Allowance Method for uncollectible accounts and has the following information in its ledger (all balances are normal): Assuming the company's aging schedule estimates uncollectible accounts to be $37,000, do the following: (Label each figure. Although not required, " T " accounts are encouraged) a. Determine the ending balance of the Allowance for Uncollectible Accounts (after the adjusting entry is posted). b. Journalize the adjusting entry to adjust the Allowance for Uncollectible Accounts. Ignoring the previous assumption, now assume the company estimates that 2% of sales will be uncollectible and do the following: (Label each figure. Although not required, "T" accounts are encouraged) c. Journalize the adjusting entry to adjust the Allowance for Uncollectible Accounts. d. Determine the ending balance of the Allowance for Uncollectible Accounts
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