The balances of selected accounts of the Dexter Company on December 31, 20x1, are given below. Accounts Receivable Allowance for Doubtful Accounts (credit) Total Sales Sales Returns and Allowances (total) $ 880,000 3,3ee 9,980,000 243.000 (Credit sales were $8,530,000. Returns and allowances on these sales were $203,000) Required: 1. Compute the amount to be charged to Uncollectible Accounts Expense under each of the following different assumptions: a. Uncollectible accounts are estimated to be 0.1 percent of net credit sales b. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. 2. Suppose Allowance for Doubtful Accounts has a debit balance of $2,800 instead of a credit balance of $3,300, but all other account balances remain the same compute the amount to be charged to Uncollectible Accounts Expense under each assumption in item 1 Analyze: If you were the owner of Dexter Company and wished to maximize profits reported for 20x1, which method would you prefer to use? Analyze: if you were the owner of Dexter Company and wished to maximize profits reported for 20x1, which method would you prefer to use? Complete this question by entering your answers in the tabs below. Reqia Reg 16 Reg 2a Reg 26 Analyze Uncollectible accounts are estimated to be 0.1 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, L. 1.2% should be entered as 0.012.) Amounts Credit Sales Net credit sales Estimated loss rate Amount to be charged to uncollectible accounts expense REG 1 Reg 1b > Analyze: If you were the owner of Dexter Company and wished to maximize profits reported for 20x1, which method would you prefer to use? Complete this question by entering your answers in the tabs below. Reg 1a Reg 1b Req 2a Reg 20 Analyze Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible Accounts Expense. Amounts Accounts receivable estimated uncollectible Amount to be charged to uncollectible accounts expense Complete this question by entering your answers in the tabs below. Regla Reg 1b Reg za Req 20 Analyze Suppose Allowance for Doubtful Accounts has a debit balance of $2,800 instead of a credit balance of $3,300, but all other account balances remain the same. Uncollectible accounts are estimated to be 0.1 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, l.e. 1.2% should be entered as 0.012.) Show less Amounts Credit sales Not credit salos Estimated loss rate Amount to be charged to uncollectible accounts expense Complete this question by entering your answers in the tabs below. Req 10 Reg 16 Reg 2a Req 26 Analyze If you were the owner of Dexter Company and wished to maximize profits reported for 20x1, which method would you prefer to use? Using the would give highest income this year.
