Question
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 255,000 Accounts Receivable, December 31, 2021 $50,000
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).
Credit Sales for 2021 $ 255,000
Accounts Receivable, December 31, 2021 $50,000
Allowance for Uncollectible Accounts, December 31, 2021 1,200 (Credit)
Calculate the effect on net income (before taxes) and total assets in 2021 for each method. Suzuki estimates 11% of receivables and 3% of credit sales respectively will not be collected.
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Financial Accounting An International Introduction
Authors: David Alexander, Christopher Nobe
6th Edition
1292102993, 978-1292102993
