Question
The accounts receivable balance for Dons Shoe Repair at December 31, 2014, was $83,000. Uncollectible accounts expense was estimated to be 1 percent of the
The accounts receivable balance for Dons Shoe Repair at December 31, 2014, was $83,000. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Also on that date, the balance in Allowance for Doubtful Accounts was $2,700 and the balance in Retained Earnings was $80,300. During 2015, $2,100 of accounts receivable were written off as uncollectible. In addition, Dons Shoe Repair unexpectedly collected $140 of receivables that had been written off in a previous accounting period. Sales on account during 2015 were $212,000, and cash collections from receivables were $213,945. Required a. Organize the information in accounts under an accounting equation. (Show effect on the accounting equation in the order provided in the question. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
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