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Swiss Supplies showed the following selected adjusted balances at its December 3 1 , 2 0 2 2 , year - end: Accounts Receivable Dec.
Swiss Supplies showed the following selected adjusted balances at its December yearend:
Accounts Receivable
Dec. Balance
Allowance for Doubtful Accounts
Dec. Balance
During the following selected transactions occurred:
Sales totalled $ of which were cash sales cost of sales $
Sales returns were $ half regarding credit sales. The returned merchandise was scrapped.
An account for $ was recovered.
Several accounts were written off: $
Collections from credit customers totalled $excluding the recovery in c above
Part A
Required:
Journalize transactions a through e You may find it useful to post your entries to Taccounts for Accounts Receivable and Allowance for Doubtful Accounts.
Part B
Required:
Prepare the December adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be of net credit sales.
Show how accounts receivable will appear on the December balance sheet.
What will bad debt expense be on the income statement for the year ended December
Part C independent of Part B
Required:
Prepare the December adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be of outstanding receivables.
Show how accounts receivable will appear on the December balance sheet.
What will bad debt expense be on the income statement for the year ended December
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