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Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 251,000 Accounts Receivable, December 31, 2021 46,000
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).
Credit Sales for 2021 | $ | 251,000 | ||
Accounts Receivable, December 31, 2021 | 46,000 | |||
Allowance for Uncollectible Accounts, December 31, 2021 | 1,100 | (Credit) | ||
3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method. Suzuki estimates 12% of receivables and 3% of credit sales respectively will not be collected.
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