Question
The accounts of Quickly Company provided the following 20X4 information at 31 December: Accounts receivable balance$630,000 (dr.) Allowance for sales discounts5,800 (cr.) Allowance for doubtful
The accounts of Quickly Company provided the following 20X4 information at 31 December:
Accounts receivable balance$630,000 (dr.) Allowance for sales discounts5,800 (cr.) Allowance for doubtful accounts43,000 (cr.)
In fact, the allowance for sales discounts is not needed at the end of 20X5 and aging shows that the allowance for doubtful accounts should be $68,600.
Required: Record the adjusting entry related to allowance for sales discount.
Record the bad debts expenses.
2. By how much have these entries changed earnings?
3. What is the net balance of accounts receivable that will be included on the SFP?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
