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Teal Corporation had the following 2017 Income Statement Sales Revenue $186,000 CGS 127,000 Gross Profit 59,000 Operating Expenses 45,000 (including depreciation of $22,000) Net Income

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Teal Corporation had the following 2017 Income Statement Sales Revenue $186,000 CGS 127,000 Gross Profit 59,000 Operating Expenses 45,000 (including depreciation of $22,000) Net Income $14,000 The following accounts increased during 2107- A/R 13,000, Inventory 12,000, A/P 14,000 Prepare the Cash Flow from Operating Activities using the Direct Method. Sender Inc. had Net Sales in 2017 of $1,481,3000. On December 31, 2017, the A/R had a $269,600 debit balance. The Allowance for Doubtful Accounts had a $1,838 debit balance. A. Assume that 11% of A/R will prove to be uncollectible. Prepare the entry to record Uncollectible Accounts expense. B. Assume that the Net Sales are the same. The A/R are the same. The Allowance for Doubtful Accounts has a $2,660 credit balance. Assume Sender Inc. prepares an aging schedule that estimates total uncollectible accounts to be $30,300. Prepare the entry to record Uncollectible Accounts Expens $728,000 Cost of Goods Manufactured Direct Materials Purchased 225,000 Direct Materials Used 216,000 200,000 Direct Labor Teal Corporation had the following 2017 Income Statement Sales Revenue $186,000 CGS 127,000 Gross Profit 59,000 Operating Expenses 45,000 (including depreciation of $22,000) Net Income $14,000 The following accounts increased during 2107- A/R 13,000, Inventory 12,000, A/P 14,000 Prepare the Cash Flow from Operating Activities using the Direct Method. Sender Inc. had Net Sales in 2017 of $1,481,3000. On December 31, 2017, the A/R had a $269,600 debit balance. The Allowance for Doubtful Accounts had a $1,838 debit balance. A. Assume that 11% of A/R will prove to be uncollectible. Prepare the entry to record Uncollectible Accounts expense. B. Assume that the Net Sales are the same. The A/R are the same. The Allowance for Doubtful Accounts has a $2,660 credit balance. Assume Sender Inc. prepares an aging schedule that estimates total uncollectible accounts to be $30,300. Prepare the entry to record Uncollectible Accounts Expens $728,000 Cost of Goods Manufactured Direct Materials Purchased 225,000 Direct Materials Used 216,000 200,000 Direct Labor

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